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).

NerdWallet defines a "call option" as a contract that gives you the right, but not the obligation, to purchase stock at a "strike price" before the call option's "expiration." The strike price is ...

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Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Samantha (Sam) Silberstein, CFP®, CSLP®, EA, is an experienced financial consultant. She has a demonstrated history of working in both institutional and retail environments, from broker-dealers to ...

Call and put options are two sides of the options market. Here we look at the difference between the call option and the put option. The essential difference between call option and put option arises ...

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Options trading involves various permutations and combinations of Call and Put options. Over time, numerous option trading strategies have been developed. A trader may choose the strategy which is ...

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 ...