Call option
A call option gives the owner the right, but not the obligation, to buy the underlying shares at a specific price (the strike price) at or before a specific date (the expiry date)..
The buyer of a call option wants the price of the underlying instrument (such as a share) to increase in the future. The seller of a call option is happy to give up the winnings from a price rise in return for the premium, which is paid immediately. The seller still has the opportunity to profit from the transaction should the price fall.
RELATED TERMS
Free newsletter
Click here to receive TheBull's free newsletters on stocks, trading, investing and more.
- Airbnb, Uber woes show Japan does... 27.06.2018 04:19 PM
- Tokyo's Nikkei index edges down 27.06.2018 04:14 PM
- Air New Zealand fined in Australia... 27.06.2018 04:02 PM
- Hong Kong stocks down at lunch 27.06.2018 03:53 PM
- Twitter to confirm new accounts in... 27.06.2018 03:49 PM
- Canada oil sands plant shut down,... 27.06.2018 12:05 PM
MoreRELATED ARTICLES
GM shares rise despite loss, tough North American market
General Motors reported a hefty loss Tuesday due to costs connected to its Opel/Vauxhall sale, but won praise for moving aggressively to address an inventory overhang in North America.
9 Agribusiness Stocks, The Rise of The Asian Middle Class
One of the most frequently cited long term global economic trends is the rise of an Asian middle class.
Experts like these Hong Kong stocks
Joseph Lai at Platinum Asset Management expects data-related revenues to skyrocket from a low base...
RESOURCES & OFFERS
Free Investing Newsletter on Asian and Australian markets. Be ahead of the curve with TheBull.
Read more
Join CommSec now and get $600 free brokerage.
Find out more