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Basics

Call Option

Right to buy shares at strike price

What is Call Option?

Call Option A contract giving the holder the right to buy 100 shares of the underlying at the strike price before expiration. Call buyers are bullish; call sellers are neutral to bearish.

Complete Definition

A contract giving the holder the right to buy 100 shares of the underlying at the strike price before expiration. Call buyers are bullish; call sellers are neutral to bearish.

Example

Buy AAPL $150 call for $5. If AAPL rises to $160, your call is worth at least $10 (intrinsic value).

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