Glossary › call option

Trading glossary · advanced

call option

A ticket that gives you the right, but not the duty, to buy something at a set price before a set date.

The fuller meaning

An option giving its buyer the right, not the obligation, to buy the underlying at the strike price up to or at expiry, for a premium paid to the seller. The buyer's loss is capped at the premium; the call seller keeps the premium but faces losses that are unlimited in theory.

call option.

Related words

at the money · backtest · backwardation · basis · contango · data snooping · delta · edge · entry trigger · exercise