What is call option?Call
The right to buy the underlying at the strike price; the higher the stock goes, the more it's worth.
Animation · call option
Learn “call option” in an animated lesson
- Hedging StrategiesHedging with Options: Protective Puts and Collars
Futures lock in both sides; options only block the bad side. See how much it costs to "insure" a stock, and how to save on the premium.
- Options BasicsCall Options
Buying a call: pay a premium to lock in the right to buy at the strike. Drag the price at expiration and watch the payoff curve "bend".
- Options BasicsIn, At and Out of the Money
Drag the stock price and watch a call and a put with the same strike flip between in the money and out of the money.
- Options BasicsPut Options
Buying a put: the right to sell at the strike, like "insurance against a fall". The lower the stock goes, the more it's worth.
- Options BasicsThe Option Seller
The seller of an option gets paid up front but takes on an obligation. Compare the risks of a short call and a short put.
- Options BasicsStrike, Premium and Expiration
Take apart an option contract and see what's written on it: underlying, type, strike price, expiration date, premium and multiplier.
- Options BasicsWhat Is an Option?
Pay a small amount now for the right to buy (or sell) at an agreed price later. Think of it like a deposit on a house.
- Options: Next StepsThe Four Basic Positions
Compare long call, short call, long put and short put side by side, and tweak the payoff curves in real time.
Related terms
See how “call option” works for yourself with an animation you can drag and play.
Go to “Hedging with Options: Protective Puts and Collars”