What is a call option?

Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Types of Stock Options and other Investing topics.

What are stock options?

What is a call option?

A call option is a contract giving its holder the right to purchase shares of the underlying stock. Purchasing a single Nike call option gives an option trader the right, but not the obligation, to buy 100 shares of Nike stock at a predetermined price during a specified period of time.

   

Comments

Nobody has commented on this tip yet. Be the first.



Name:


URL: (optional)


Comment:


Not finding the advice and tips you need on this Investing Tip Site? Request a Tip Now!


Guru Spotlight
Kristle Jones