By Brian M. Reiser Call options are financial contracts that give the holder the right – but not the obligation – to purchase an underlying stock or asset at a specified price at a specified time or up until that specified time. Generally, when an investor buys a call option, they think the price of the underlying stock will go up and the option holder will make money as the price of the underlying stock increases.
You can buy call options to speculate on stock prices and magnify your returns. Or, you can sell them to collect income if you are bearish on the price …read more
