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Call Option

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 ๐Ÿ“ˆ. 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 โ‰ค Market Prices