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.

BREAKING DOWN '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 On A Call

    A type of compound option in which the investor has the right ...
  2. American Option

    An option that can be exercised anytime during its life. American ...
  3. Exercise Price

    The price at which the underlying security can be purchased (call ...
  4. Early Exercise

    Early exercise is the process of buying or selling shares under ...
  5. In The Money

    1. For a call option, when the option's strike price is below ...
  6. Fiduciary Call

    A cost effective strategy designed to limit the costs associated ...
Related Articles
  1. Trading

    Dividends, Interest Rates and Their Effect on Stock Options

    Learn how analyzing dividends and interest rates is crucial to knowing when to exercise early.
  2. Financial Advisor

    The Best Strategies to Manage Your Stock Options

    We look at strategies to help manage taxes and the exercise of incentive and non-qualified stock options.
  3. Trading

    Three Ways to Profit Using Call Options

    A brief overview of how to provide from using call options in your portfolio.
  4. Investing

    What are Options Contracts?

    An explanation of options contracts, call options and put options.
  5. Trading

    The Basics of Covered Calls

    Learn how this options strategy can lower the risk of stock or futures contract ownership while increasing potential profits.
  6. Trading

    Getting acquainted with options trading

    Learn about trading stock options, including some basic options trading terminology.
RELATED FAQS
  1. How do I change my strike price once the trade has been placed already?

    Learn how the strike prices for call and put options work, and understand how different types of options can be exercised ... Read Answer >>
  2. After exercising a put option, can I still hold my option contract in order to sell ...

    Once a put option contract has been exercised, that contract does not exist anymore. A put option grants you the right to ... Read Answer >>
  3. How is a put option exercised?

    Learn the process, and what happens, when you exercise a put option. Also read about alternatives to exercising an option. Read Answer >>
  4. When does one sell a put option, and when does one sell a call option?

    An investor would sell a put option if her outlook on the underlying was bullish, and would sell a call option if her outlook ... Read Answer >>
Hot Definitions
  1. Bond

    A bond is a fixed income investment in which an investor loans money to an entity (corporate or governmental) that borrows ...
  2. Compound Annual Growth Rate - CAGR

    The Compound Annual Growth Rate (CAGR) is the mean annual growth rate of an investment over a specified period of time longer ...
  3. Net Present Value - NPV

    Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows ...
  4. Price-Earnings Ratio - P/E Ratio

    The Price-to-Earnings Ratio or P/E ratio is a ratio for valuing a company that measures its current share price relative ...
  5. Internal Rate of Return - IRR

    Internal Rate of Return (IRR) is a metric used in capital budgeting to estimate the profitability of potential investments.
  6. Limit Order

    An order placed with a brokerage to buy or sell a set number of shares at a specified price or better.
Trading Center