Buying And Selling Call Options [2025]

A is a contract that gives the buyer the right (but not the obligation) to buy 100 shares of a stock at a specific price ( Strike Price ) before a certain date ( Expiration ). 2. Buying Call Options (Bullish)

The stock price is lower than the strike price. buying and selling call options

You buy a call if you expect the stock price to rise significantly. You pay a fee called a Premium . A is a contract that gives the buyer

Limited to the premium you paid. If the stock doesn’t reach the strike price by expiration, the option expires worthless, and you lose 100% of your investment. the option expires worthless