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).

Explore the binomial tree model's use in option pricing, its workings, and examples. Learn how this model estimates intrinsic ...

Learning how to trade options helps expand your trading choices. It’s a powerful tool you can use to speculate on and hedge against market moves. But how do you know which strategy to use in a certain ...

Thomas J Catalano is a CFP and Registered Investment Adviser with the state of South Carolina, where he launched his own financial advisory firm in 2018. Thomas' experience gives him expertise in a ...

A put option is a financial contract that provides an investor the right (but not obligation) to sell a stock at a designated price prior to an expiration date. Learn more about put options and how ...

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When you purchase an options contract, you're purchasing the right to buy or sell a stock (or other security) at a set price. Many, or all, of the products featured on this page are from our ...

Once you know the basics of how options work, putting options trading strategies in place marks the next step. Many, or all, of the products featured on this page are from our advertising partners who ...

The options calculator below can help you with both call and put options. Feel free to test out some examples to find an option’s theoretical price. Then below the options profit calculator, you can ...

Options contracts are financial instruments that derive their value from an underlying asset. For the sake of simplicity, on this page, we’ll focus on options on equities (ie options where the ...

NerdWallet defines a "call option" as a contract that gives you the right, but not the obligation, to purchase stock at a "strike price" before the call option's "expiration." The strike price is ...