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).

Covered calls are a common investment strategy. This strategy involves owning stocks and selling call options on them. By selling call options, investors earn extra income from option premiums while ...

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 ...