What Is a Call Option? A call option is a contract that gives the buyer of the option the right to purchase a security, such as a specific stock, at a specific price (referred to as the strike price).

Options trading can be complex, and the trading jargon may confuse even experienced investors and traders. Two of the most common options contracts to understand are call and put options. Here’s what ...

Yes, American call options can be exercised at any time before expiration, while European options can only be exercised on the expiration date. An option gives you the right to buy or sell 100 shares ...

A call option contract gives the buyer the right, but not the obligation, to buy shares of a stock or bond at a stated price on or before the contract’s expiration date. A single call option contract ...

Covered calls are a common investment strategy. This strategy involves owning stocks and selling call options on them. By selling call options, investors earn extra income from option premiums while ...

A guide to writing these derivatives to earn income or hedge your portfolio Reviewed by Samantha Silberstein Fact checked by ...