Choosing an Appropriate Option Strategy

In finance, options are financial derivatives that provide the owner the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specified timeframe.

John, a trader, believes that the stock of Company XYZ, currently priced at $50, will rise in the coming months. To profit from this expected price increase, he is considering which option strategy to implement.

Which of the following option strategies would be most appropriate for John to capitalize on his bullish outlook on Company XYZ's stock?