What is Call Option?
A call option gives the holder the right to buy the underlying asset at a fixed strike price until the option expires. A call buyer tends to gain if the underlying rises well above the strike before expiration, and the most a call buyer can lose is the premium paid. This is a plain description of the contract, not a suggestion to trade one.
Why Call Option matters
Calls are the building block for expressing an upside view with defined cost, and they appear throughout options markets.
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