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CALL OPTIONS – a Call gives you the right but not the obligation to buy a stock at a predetermined price (The Strike Price) until the date of expiration. If the stock price on the expiration date is less than your strike price, you have nothing, it expired worthless. If the stock is higher than the strike, you have some return, but only make a profit if it’s higher than the strike plus the premium you paid, as illustrated by this chart. For call options higher is better.

(More to come)