Options & Bonds
What is Call Option?
A contract giving you the right to buy a stock at a set price
Full Explanation
A call option gives you the right (not obligation) to buy 100 shares of a stock at the "strike price" before the expiration date. If the stock rises above the strike price, your call gains value.
Real-World Example
Buy a $150 call on Apple. AAPL rises to $175. Your call is worth at least $25 per share.
Pro Tip
Options can expire worthless. Never put money in options you can't afford to lose completely.
Related Options & Bonds Terms
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