A contract that gives the buyer the right, but not the obligation, to buy an underlying asset at a fixed price before expiry.
A call option is a derivatives contract that gives the buyer the right, but not the obligation, to buy a specified quantity of an underlying asset (a stock or index) at a predetermined strike price on or before the expiry date. Traders buy call options when they expect the price of the underlying to rise. The maximum loss for a call buyer is limited to the premium paid, while the profit potential is theoretically unlimited as the underlying price rises.
Got a question or a feature you wish existed? Drop it in our Telegram community, the Stolo team is right there reading every message.