A right (not an obligation) to buy 100 shares at a set price (the strike) before expiration. Profits when the stock rises above breakeven (strike + premium).
What this contract is
A Call Option (Call Option) is a contract that gives its holder the right to buy 100 shares at the strike price until the expiration date. It is a right, not an obligation: if buying no longer makes sense, you let it expire and lose only the premium. The seller, on the other side, must sell if called on.
Its basic economics
You pay a small premium for exposure to a big rise: leverage with the loss capped from the start. Its value rises as the stock rises (delta), speeds up (gamma), erodes with time (theta) and breathes with expected volatility (vega). All four Greeks live in this contract.
Its three uses
A bullish bet with controlled leverage. A stock substitute with less capital (deep-delta contracts). And an income source for those who sell it covered against shares they own. One tool, three intentions.
Hypothetical example
A stock at $95 and a two-month call with a $100 strike and a premium of $2.50: the stock jumps to $112, so the intrinsic value is $12, about five times the premium. If it stays below 100, the whole premium dies, and that was the loss cap from the start.
Common mistake
Judging the idea by direction alone: the stock can rise and the contract can still lose, if the move is slower than time or volatility collapses after an event. Buying the contract is a bet on a move of a certain size and speed, not only on a direction.
Where to see it on the platform
The options chain shows call contracts with their prices and Greeks, and the calculator prices any contract you assume before you pay a cent.
