Call Option
InvestingGlossary term
Definition
A contract giving the buyer the right (but not obligation) to purchase a stock at a specified price within a specific timeframe. Used for speculation or hedging strategies.
Related terms
- Put OptionA contract giving the buyer the right to sell a stock at a specified price within a specific timeframe. Used to profit from price declines or protect against losses.
- OptionsContracts giving the right, but not obligation, to buy (call) or sell (put) an asset at a set price before expiration. Used for speculation, hedging, or income generation.
- DerivativesFinancial contracts whose value is derived from an underlying asset, such as stocks, bonds, commodities, or currencies. Includes options, futures, and swaps.
Get advice that uses your real numbers
Warren reads your accounts and explains what terms like this mean for your plan. Free to start, no credit card required.