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OptionsC

Call Option

An option contract giving the holder the right, but not the obligation, to buy the underlying asset at the strike price before expiration. Buyers profit when the underlying price rises above the strike plus the premium paid. Call options are one of the most fundamental instruments in options trading, used for speculation, hedging, and income generation strategies.

Example

She bought a $200 call option on NVDA expiring next month, expecting the stock to rally after earnings.