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.


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.


  1. Uncovered Option

    A type of options contract that is not backed by an offsetting position that ...
  2. Fence (Options)

    A fence or collar is an option strategy that establishes a trading band around ...
  3. Multi-Leg Options Order

    A type of order that allows an option trader to simultaneously buy or sell a ...
  4. Buy-Write

    A trading strategy that consists of writing call options on an underlying position ...
  5. Synthetic Call

    An investment strategy that mimics the payoff of a call option. A synthetic ...
  6. Ratio Call Write

    An option strategy in which an investor owns shares in the underlying stock ...
  7. Long (or Long Position)

    1. The buying of a security such as a stock, commodity or currency, with the ...
  8. Put

    An option contract giving the owner the right, but not the obligation, to sell ...
  9. Frontspread

    A type of options spread in which a trader holds more short positions than long ...
  10. Fugit

    The amount of time that an investor believes is left until it would no longer ...
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