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 financial contracts that give the option buyer the right, but not the obligation, to buy a stock, bond, commodity or other asset or instrument at a specified price within a specific time period. The stock, bond, or commodity is called the underlying asset. A call buyer profits when the underlying asset increases in price.
A call option may be contrasted with a put, which gives the holder the right to sell the underlying asset at a specified price on or before expiration. | | Read More » | | Covered Call | | A covered call refers to transaction in the financial market in which the investor selling call options owns the equivalent amount of the underlying security. | | Read More » | | | Strike Price | | Strike price is the price at which a derivative contract can be bought or sold (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 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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