Friday, October 19, 2018

What is a 'Call Option'?

An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument at a specified price within a specific time period.
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Call Option
A call option is an agreement that gives an investor the right, but not the obligation, to buy a stock, bond, commodity or other instrument at a specified price within a specific time period.
Breaking it Down:
Call options are typically used by investors for three primary purposes. These are tax management, income generation and... Read More
Related to "Call Option"
Is it more advantageous to purchase a call or put option?
Learn the advantages of put and call options to choose the right side of the contract to meet your personal investment objectives. Read More
When is a call option considered to be "in the money"?
Learn about call options, their intrinsic values and why a call option is in the money when the underlying stock price is above the strike price. Read More
Understanding warrants and call options
Warrants and call options are securities that are quite similar in many respects, though they have some notable differences. Read More
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Related Definitions
Covered Call
An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset in an attempt to generate increased income from the asset. Read More
Strike Price
The price at which a specific derivative contract can be exercised. Read More
Naked Call
A naked call is an options strategy in which the investor writes (sells) call options without owning the underlying security. Read More
Call On A Call
A type of compound option in which the investor has the right to exercise a call on the underlying asset, which is an option. Read More
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