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If the stock trades between $75 and $75.41, you've made some money - from $75.41 you break ever. But like anything your market market this trade isn't without jeopardy. If the XLE trades between $75.42 and $76 you lose some revenue. But get this. Because own the $76 call option, your losses are limited.
It indicates that if you were to buy stock, 100 shares at $50 would cost you $5,000 whole. By using options, you can control those same 100 shares for a few $ 100. When the stock moves in your direction, your profits could be huge.
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