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Derivatives

Call Option

A contract giving the right to buy a stock at a specified strike price by an expiration date.

In depth

Call buyers profit when the underlying rises above strike + premium paid. Call sellers (writers) collect premium but face unlimited upside obligation if uncovered. "Covered call" = selling calls against owned stock — a popular income strategy.

Frequently asked about Call Option

What is Call Option?

A contract giving the right to buy a stock at a specified strike price by an expiration date. Call buyers profit when the underlying rises above strike + premium paid. Call sellers (writers) collect premium but face unlimited upside obligation if uncovered. "Covered call" = selling calls against owned stock — a popular income strategy.

Why does Call Option matter for investors?

In derivatives, Call Option is one of the building blocks investors use to compare opportunities and assess risk. Understanding it helps you read research notes, earnings reports, and market commentary without getting lost in jargon.

How is Call Option used in practice?

Call buyers profit when the underlying rises above strike + premium paid. Call sellers (writers) collect premium but face unlimited upside obligation if uncovered.

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