Call Over

AAA

DEFINITION of 'Call Over'

When the buyer of a call option exercises the option. In options trading, the buyer of a call option can exercise his or her right to purchase or sell the underlying asset (such as a stock) at the exercise price or strike price.

INVESTOPEDIA EXPLAINS 'Call Over'

Buyers of options can either exercise their right to buy the underlying security or they can let the option expire wothless. A call over can take place throughout the life of the option until the exercise cut-off time that falls on the last trading day prior to the option contract's expiration.

RELATED TERMS
  1. Call

    1. The period of time between the opening and closing of some ...
  2. Option

    A financial derivative that represents a contract sold by one ...
  3. Options Contract

    A contract that allows the holder to buy or sell an underlying ...
  4. Exercise

    To put into effect the right specified in a contract. In options ...
  5. Strike Price

    The price at which a specific derivative contract can be exercised. ...
  6. Exchange Traded Derivative

    A financial instrument whose value is based on the value of another ...
RELATED FAQS
  1. How is a put option exercised?

    A put option is a contract that gives the option holder the right, but not obligation, to sell a set amount of shares (1 ... Read Full Answer >>
  2. When is an options straddle deep in the money?

    A straddle is an options position where an investor or trader has a position in both a call option and a put option with ... Read Full Answer >>
  3. How can I use equity options to protect my stock portfolio from downturns?

    Equity options, or stock options, could serve as protection and help to mitigate risk for a long stock portfolio. Stock options ... Read Full Answer >>
  4. What types of options positions create unlimited liability?

    Selling naked calls creates unlimited liability. Therefore, these types of option strategies are considered appropriate for ... Read Full Answer >>
  5. How does the term 'in the money' describe the moneyness of an option?

    In options trading, the term "moneyness" refers to the relationship between an option contract's strike price and the current ... Read Full Answer >>
  6. What is the difference between in the money and out of the money?

    In options trading, the difference between "in the money" and "out of the money" is a matter of the strike price's position ... Read Full Answer >>
Related Articles
  1. Options & Futures

    Options On Futures: A World Of Potential Profit

    There's one simple hurdle in the transition from stock to futures options: learning about product specifications.
  2. Options & Futures

    The Ins And Outs Of Selling Options

    Selling options can seem intimidating but with these tips, you can enter the market with confidence.
  3. Options & Futures

    4 Reasons To Hold Onto An Option

    There are times when an investor shouldn't exercise an option. Find out when to hold and when to fold.
  4. Options & Futures

    The 4 Advantages of Options

    Flexible and cost efficient, options are more popular than ever. Find out why.
  5. Investing Basics

    Understanding Notional Value

    This term is commonly used in the options, futures and currency markets because a very small amount of invested money can control a large position.
  6. Options & Futures

    The Risks Of Writing Covered Calls

    While writing a covered call option is less risky than writing a naked call option, the strategy is not entirely riskfree.
  7. Options & Futures

    How Low Can Oil Prices Go?

    Record low oil prices are a welcome development for consumers, but oil companies are struggling with choosing market share over profitability.
  8. Options & Futures

    SEC-Regulated Options Brokers

    Investopedia provides a List Of SEC-Regulated Options Brokers
  9. Options & Futures

    How To Trade Orange Juice Options

    How do orange juice options work and which factors determine the orange juice valuations? Here's a sneak peak into the world of orange juice options.
  10. Fundamental Analysis

    Explaining the Geometric Mean

    The average of a set of products, the calculation of which is commonly used to determine the performance results of an investment or portfolio.

You May Also Like

Hot Definitions
  1. Capital Stock

    The common and preferred stock a company is authorized to issue, according to their corporate charter. Capital stock represents ...
  2. Unearned Revenue

    When an individual or company receives money for a service or product that has yet to be fulfilled. Unearned revenue can ...
  3. Trailing Twelve Months - TTM

    The timeframe of the past 12 months used for reporting financial figures. A company's trailing 12 months is a representation ...
  4. Subordinated Debt

    A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known ...
  5. International Financial Reporting Standards - IFRS

    A set of international accounting standards stating how particular types of transactions and other events should be reported ...
  6. Geometric Mean

    The average of a set of products, the calculation of which is commonly used to determine the performance results of an investment ...
Trading Center