Call Option
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Opposite of Put Option
This is the right to buy a stock at a certain price before a specific date. A call option is for when you think the stock market will go bullish 📈. If the stock price goes up significantly before the expiry, you can exercise your option to buy it at the promised (cheaper) price and sell it immediately to the stock market.
- Max Profit: Limitless
- Max Loss: Call Options Exercising Premium
- Break-even point: Exercising Price + Premium
- Call Options Exercising Premium + Promised Price ≤ Market Prices