The Call Option

A call is the right to buy 100 shares of stock at a fixed price per share, at any time between the purchase of the call and the specified future deadline. This time is limited. As a call buyer, you acquire the right, and as a call seller, you grant the right of the option to someone else. [caption id="attachment_12408" class=" call-option-img" align="alignright" width="370px"]The call option. The call option.[/caption] Let's walk through an illustration and apply both buying and selling as they relate to the call option.

By Michael C. Thomsett
Michael Thomsett is a British-born American author who has written over 75 books covering investing, business and real estate topics.

Copyrighted 2016. Content published with author's permission.

Posted in ...