call option
Right to buy
A call option is a financial contract giving the holder the right, but not the obligation, to buy an asset at a specified price within a set time period.
Buyers pay a premium for this right, betting the asset's price will rise above the strike price before expiration.
She bought call options on the stock at $50, hoping it would climb to $60.
Opposite of a put option.
Added cost for better
- strike pricePredetermined option execution level
- expirationEnd of validity
- derivativesThings derived from another
- contractsEnforceable written agreements
volatility · delta · gamma · theta · vega · rho · hedging · leverage
Turning over repeatedly
Expecting market gains
- betRisked stake on outcome
- wagerStake on uncertainty
- leverageBorrowed capital for amplified returns
- upsideFavorable aspect
risk-reward · momentum · breakout · lottery ticket · home run
premium
Added cost for better
- strike pricePredetermined option execution level
- expirationEnd of validity
- derivativesThings derived from another
contracts · volatility · delta · gamma · theta · vega · rho · hedging · leverage · liquidity
rolling
Turning over repeatedly
bullish
Expecting market gains
upside · risk-reward · momentum · breakout · lottery ticket · home run
- financial contractsfutures contract, forward contract, insurance policy, derivative, annuity
- financial instrumentspromissory notes, check, bond fund, cheque, checks
- derivativesderivatives, sequel, remake, spinoff, forward
- optionsstrike price
- stock optionsstock options, strike price, vesting, vesting schedule, ISO
- tradingbid, buy, ask, sell, trading
call, recall, calling, option, called, caller, optional, uncalled, optionally