Options trading
Call option
Definition
A call gives its buyer the right to buy the underlying at the strike price until expiration. Call buyers generally expect the price to rise. Our call vs put guide compares the two.
Example
Say a stock trades at $60 and you buy a call with a $62 strike for $1.50 per share, or $150 per contract, which puts your breakeven at expiration at $63.50. If the stock closes at $66, the call is worth $4.00 per share, or $400, a $250 gain. If it closes at $62 or below, the call expires worthless and you lose the $150.
Hypothetical numbers, for illustration only.
UpTickFlow is our product. These guides are education, not financial advice. Trading involves a substantial risk of loss.