What Is Call Option?
Definition and plain-English explanation of "Call Option"
A call option gives the buyer the right to purchase a stock at a specific strike price before the expiration date. If the stock rises above the strike price, the call option becomes profitable. For example, a call option with a $100 strike price on a stock trading at $120 has $20 of intrinsic value. Call buyers are bullish on the underlying asset.
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Market Navigator Glossary — plain-English definitions of 93+ investing and crypto terms. All content is for educational purposes only and does not constitute financial advice.