Call Option

What Does Call Option Mean?
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.

Investopedia explains Call Option
It may help you to remember that a call option gives you the right to "call in" (buy) an asset. You profit on a call when the underlying asset increases in price.

Filed Under: Derivatives, Derivatives, Futures, Options

Related Terms

Buy-Write
Call
Frontspread
Fugit
Long (or Long Position)
Multi-leg Options Order
Put
Ratio Call Write
Synthetic Call
Underlying
More Related Terms

Related Links

The Four Advantages Of Options - Flexible and cost efficient, options are more popular than ever. Find out why.
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.
An Alternative Covered Call Options Trading Strategy - This different approach to the covered call write offers less risk and greater potential profit.
The Barnyard Basics Of Derivatives - Follow this tale of a fictional chicken farm to learn how derivatives work in the market.
Rolling LEAP Options - Learn how to buy and hold with leverage.
How To Avoid Closing Options Below Intrinsic Value - Find out how to get a better price for your option and increase your trading profits.
Callable Bonds: Leading A Double Life - Find out more about these dangerous and exciting cousins to regular bonds.
Exotic Options: A Getaway From Ordinary Trading - These unusual investment vehicles can reignite your interest in trading.
Options Basics Tutorial - An introduction to the world of options, covering everything from primary concepts to how options work and why you might use them.
Conversion Arbitrage - This stock/options combination helps traders take advantage of market mispricing. Find out how.
Minimize Risk With The Long Collar - Think your favorite stock is on the way down? This simple option-trading strategy can help you manage your risks without selling the stock.
Reducing Risk With Options - If you want to use leverage to your advantage, you must know how many contracts to buy.
When does one sell a put, and when does one sell a call?
How is a put option exercised?
What does it mean when a bond has a put option?
Why are corporations so concerned about their stock prices?
FREE Options Trading Manual - Get a free 21-page Book on learning to trade options from the Chicago Board of Trade. If you are new to the option market, this booklet is designed for you!
Is there a method to your trading, or just madness? - Many professional traders say developing a solid approach, and sticking to it, is key to trading longevity. Lind-Waldock offers some timeless trading wisdom in this free downloadable guide.
Trade with optionsXpress! - optionsXpress. Options, stocks and futures. One online account.
Resolve to Diversify. Choose Commodities. - Don't repeat trading mistakes of 2008. Consider your investment alternatives. Trade 700+ global futures markets with Lind-Waldock.
FxPro.com - Trade Forex Like a Pro
Options Protect Your Assets and Generate Income. Complimentary Intro Guide
TradeKing - $4.95 Online Stock Trading

Rate this Term: Your Rating: Overall Rating: Vote Now!