The investor is "short" the call but is "long" the stock and has received a premium payment for the option. If the option is exercised, the writer of a covered call would be required to sell the stock ...

A call option contract gives the buyer the right, but not the obligation, to buy shares of a stock or bond at a stated price on or before the contract’s expiration date. A single call option contract ...

Jason Fernando is a professional investor and writer who enjoys tackling and communicating complex business and financial problems. Samantha (Sam) Silberstein, CFP®, CSLP®, EA, is an experienced ...

What will a stock be worth at a future date? Buying a call option bets on “more.” Selling a call bets on “less.” Here are 3 examples of call options trading. Many, or all, of the products featured on ...

What Is a Call Option? A call option is a contract that gives the buyer of the option the right to purchase a security, such as a specific stock, at a specific price (referred to as the strike price).

A call option is an option contract that gives the owner of a security the right to buy a corporation’s stock at a specific price within a stated time period. Investors purchase call options when they ...

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Call options are agreements between a buyer and a seller that give the buyer (or option holder) the right, but not the obligation, to buy a security at a predetermined price within a specified ...

Covered-call funds have recently come back into the spotlight. Investors poured over $26 billion into the now-$65-billion derivative income Morningstar Category in the trailing 12 months, and over ...

Paid non-client promotion: Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our ...