Definition: Call Option | Tackle Trading: The #1 rated trading education platform

Call Option

Call options are a contract that give the buyer of a call option the right, but not the obligation, to buy an underlying asset at a specified price called the strike price, within a specific time period before the expiration date.

A call buyer can profit when the underlying asset increases in price and can be sold at will at the current market value anytime before the expiration date. Call options typically give the holder the right to buy 100 shares of the underlying asset.

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