A call option is an agreement that gives the option buyer the right to buy the underlying asset at a specified price within a specific time period.
| Call Option | Call options are an agreement that give the option buyer the right, but not the obligation, to buy a stock, bond, commodity or other instrument at a specified price within a specific time period. The stock, bond, or commodity is called the underlying asset. | Breaking it Down: | Call options give the holder the right to buy 100 shares of an underlying stock at a specific price, known as the... | Read More » | Covered Call | The covered call is an option strategy used to generate options income on an asset already held in a portfolio. | Read More » | | Strike Price | Strike price is the price at which the underlying asset of a derivative can be bought or sold at. | 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 call on a call is a type of exotic option in which the investor buys a secondary call option with customized provisions that gives them the option to buy a plain vanilla call option on an underlying security. | Read More » | | | | | | CONNECT WITH INVESTOPEDIA | | | | | |
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