Whats a call option all about?
A call option gives you the right to buy a defined amount of the underlying asset at a certain price before a certain amount of time expires. (Think of it as a bet that the underlying asset is going to rise in value.) If you don’t buy the asset by the time the option expires, you lose only the money that you spent on the call option. You can always sell your option prior to expiration to avoid exercising it, to avoid further loss, or to profit if it has risen in value. Call options usually rise in price when the underlying asset rises in price. When you buy a call option, you put up the option premium for the right to exercise an option to buy the underlying asset before the call option expires. When you exercise a call, you’re buying the underlying stock or asset at the strike price, the predetermined price at which an option will be delivered when it is exercised. The attractiveness of buying call options is that the upside potential is huge, and the downside risk is limited to the o
