Call option
A call option gives its holder the right to buy a stock at a set price by a set date — a bet, in essence, that the stock will rise.
A call option is a contract that gives the buyer the right to purchase 100 shares of a stock at a fixed strike price until the option expires, for an upfront premium. Buyers of calls generally profit if the stock rises well above the strike before expiration; if it does not, the call can expire worthless and the entire premium is lost.
Calls are used to speculate on a rise with leverage, or to add income by selling ("writing") them against shares already owned. Buying calls caps your loss at the premium paid, but that premium can vanish entirely and quickly as expiration nears — options lose value as time passes, all else equal.
stocks-llm does not deal in options of any kind. This definition is educational only and is not a suggestion to buy calls on any company.
See more terms in the stocks-llm glossary.
Informational only — NOT financial advice. This is an educational definition, not a recommendation to buy or sell anything. Metrics on stocks-llm are delayed data and may be missing or stale. Always verify information independently and consult a qualified financial professional before making any investment decision.