When you buy to open call options, you are making a bet that the underlying stock will rise in value. If you buy one call contract, you are essentially long 100 shares of that stock. As such ...
Image source: The Motley Fool A call option is the right to buy a stock at a specific price by an expiration date, and a put option is the right to sell a stock at a specific price by an ...
Here’s a graph of the buyer’s profit when the ... So traders can wager on a stock’s rise by buying call options. In this sense, calls act the opposite of put options, though they have ...