When to use
When you are very bullish on the market.  The more bullish you are, the more out-of-the-money (higher) should be the option you buy.  No other positions give you as much leverage advantage in a rising market (with limited downside risk).

Profit Characteristics
Profit increases as market rises.  At expiration, break-even point will be option exercise price A + price paid for option.
  For each point above break-even, profit increases by an additional point.

Loss Characteristics
Loss limited to amount paid for option.  Maximum loss realized if market ends below option exercise A. 
For each point above A, loss decreases by an additional point.

Decay Characteristics
Positions are a wasting asset.  As time passes, value of position erodes toward expiration value. 
If volatility decreases, erosion speeds up.

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