An option contract that gives the owner the right to buy 100 shares (usually) of an underlying stock at a specified price (its strike price) for a certain, fixed period of time (until its expiration). For the writer of a call option, the contract represents an obligation to sell 100 shares (usually) of an underlying stock if the option is assigned. E.g.: The owner of an AAA MAR 65 call, would have the right to buy 100 shares of AAA at $65 (strike price) per share between now and the third Friday in March (expiration date).
A derivative that gives the buyer the right to buy 100 shares of the underlying security at a fixed price, before a specified date, usually three, six, or nine months in the future. For this right, the buyer pays a premium.
Buying a call option gives you the right to buy a fixed quantity of the underlying investment at a specified price, called the strike price, within a specified time period. For example, you might buy a call option on 100 shares of a share if you expect the market price to increase but prefer not to tie up your money by making the actual purchase. If the price of the share goes up, you can exercise the option and buy at less than the market price. But if the price doesn't change or it drops, you can simply let the option expire. In contrast, you can sell a call option, which is known as writing a call. That gives the buyer the right to buy the underlying investment from you at the strike price before the option expires. If you write a call, you are obliged to sell if the option is exercised.
The right to buy a specific number of shares of an investment (such as stock) at a pre-set price by a certain date. With stock options, for instance, in exchange for a premium, a call gives the holder the right to buy 100 shares of a stock at a "strike" price at any time during a set period that may vary from 1 to 90 days. Call options are appropriate for investors who feel that a certain stock is going to go up in value. If the stock increases in value, the investor would exercise the option and collect a profit on the price increase. If the stock drops, the investor would let the option expire, forfeiting the price of the premium. (Also see Option.)
the right to purchase stock at a stated "strike" price at any time prior to a predetermined deadline, at which point the option expires. Because the price of an options contract is low relative to that of the underlying security, an option gives investors the ability to control a large position without having to put up as much capital. Compare put option.
An option that gives the holder the right to enter a long futures position at a specific price, and obligates the seller to enter a short futures position at a specific price, if he is assigned for exercise.
A contract that gives the buyer the right to buy a given quantity of the underlying asset at a predetermined price on or before a specified date. If the option or right is not exercised the option expires and the buyer forfeits the money.
An options contract which gives the purchaser the right to buy a certain number of underlying instruments at a predetermined price up to or at a certain time in the future (physical delivery) or receive the difference between the daily closing price of the underlying instrument and the strike price up to a predetermined time (cash equivalent).
1. The right to buy 100 shares of a stock (or stock index, etc.) at set price. Usually, the option holder has the right, but not the obligation to purchase the property. The option expires at a set time. For example, the current price of Madison Inc. is $50. For $5 per share you can purchase a option that allows you to buy Madison stock at $52 at anytime within the next 60 days. Traded options expire at preset times. 2. The right to prepay a mortgage.
banking/finance/foreign exchange) The right to buy a fixed amount of a commodity, security or currency from the option writer (option seller) at a predetermined rate and/or exercise price within a specified time limit.
This is the right an investor may buy which gives him the option to buy bonds or shares at a fixed price at a future date. If the price rises within the period he may exercise his option and take the profit. If the price declines he does not have to deliver, but he sacrifices his option money.
A contract that gives the holder the right to buy a certain quantity (usually 100 shares) of an underlying security from the writer of the option, at a specified price (the strike price) up to a specified date (the expiration date).
Contract that gives the option holder the right to buy a certain number of shares of a stock at a predetermined price before the option hits its expiration date. You are by no means obligated to perform a call option. If the stock price rises, you make money.
The unilateral right to commit another to a contractual relationship usually requiring that other party to sell shares, property or other assets at a pre-determined price or formula and usually on the basis of pre-determined conditions. It may be in tandem with a put option. See also Put Option Close
An option which gives the holder the right, but not the obligation, to buy a fixed amount of a certain stock at a specified price within a specified time. Calls are purchased by investors who expect a price increase.
A contract that gives authority to the holder of an option to buy the underlying currency at a predetermined price (strike price) at any time until the expiration of the contract. The seller of the option then may be required to take a short position in the underlying currency if the call is subsequently exercised.
The call option gives the buyer the right to buy a currency on or before a predetermined date (expiry date) at a fixed rate called the strike price. The buyer of a Call may either exercise the option and buy the currency or allow it to expire worthless. The seller of a Call is required to deliver the underlying currency upon exercise by the option holder although the option may never be exercised if the spot rate never equals the strike price.
This security gives investors the right to buy a security at a fixed price within a given time frame. An investor, for example, might wish to have the right to buy shares of a stock at a certain price by a certain time in order to protect, or hedge, an existing investment.
A contract giving the buyer or the holder the right but not the obligation to buy the underlying at an greed price within or at a specified time. The seller or writer ha the obligation to sell. See Put Option.
an option contract giving the the owner the right, but not the obligation, to buy a specified amount of an underlying security at a specified price within or at a specified time. For credit default swaps options, a call can be a call on risk (receiver) or on protection (payer)
The right to purchase a specific number of shares at a stated price within a fixed period of time. A call option, which is the opposite of a put option (the right to sell at a set price), is often purchased when an investor speculates that the price of the underlying security will go up. For each call option purchased, there is also a seller. This is often someone who owns the related common stock. By selling a call option, such an investor is doing a "covered write": a hedge against a decline in the stock price.
A type of option contract that gives its holder the right (but not the obligation) to buy a specified number of shares of the underlying stock at the given price, on or before the expiration date of the contract.
A contract giving the buyer the right to purchase something within a certain period of time at a specified price. The seller receives money (the premium) for the sale of this right. The contract also obligates the seller to deliver, if the buyer exercises his right to purchase.
An option contract which gives the holder the right, but not the obligation, to buy a specified amount of an underlying security at a specified price within a specified time in exchange for a paying a premium.
An option contract that gives the holder the right to purchase, and places upon the obligation to sell, a specified number of shares of the underlying stock at the given strike price on or before the expiration date of the contract. CAPITAL Accumulated money or goods used to produce income
An option giving its holder (buyer) the right to purchase 100 shares of stock at a fixed price any time within a specified period (the lifetime of the option). Also sometimes referred to as a buyer's option. See Put Option.
Gives its buyer the right to buy or sell 100 shares of the underlying security at a fixed price before a specified expiration date. Call buyers hope the price of the stock will rise. Call sellers hope the price will stay the same or go down.
The right to buy 100 shares of a security at a stated price usually within 9 months from the date the option is purchased. An investor would purchase a Call Option if he/she thought that the price of the underlying security would be increasing in the near term.
The right to buy stock at an agreed upon price by a certain date. The investor hopes the price of the stock goes up by the date, so they can buy them at the agreed upon price, and sell them at the (higher) market price.
An option that gives the buyer the right to be long the underlying futures contract at a specific price (strike price) on or before the expiration date. Call option buyers are not obligated to be long; they have the right to be long. See also "Put Option" and "Strike Price."
This is the right, but not the obligation, to buy shares at a specified price at a specified date in the future. If the share price has risen above the specified price on the future date, you can buy the shares at the lower price and then sell at an immediate profit. This is called exercising the option. If the share price hasn't risen, there's no point exercising the option and it expires. All you lose is the premium you paid to buy the option - usually a fraction of the underlying share price.
An option contract that gives the holder of the option the right (but not the obligation) to purchase, and obligates the writer to sell, a specified number of shares of the underlying stock at the given strike price, on or before the expiration date of the contract.
A call option gives the owner the right, but not the obligation, to buy the underlying stock at a given price (the strike price) by a given time (the expiration date). The owner of the call is speculating that the underlying stock will go up in value, hence, increasing the value of the option. The purpose can be to speculate with the option (hope it goes up and sell for a profit), to invest in the underlying stock at a locked in price if the stock price goes high enough, or to generate income. Each option contract equals 100 shares of stock. For example, an AAA MAR 65 call, would give the owner the right to buy 100 shares of AAA at $65 (strike price) per share between now and the third Friday in March (expiration date).
A provision of a note which allows the lender to require repayment of the loan in full before the end of the loan term. The option may be exercised due to breach of the terms of the loan or at the discretion of the lender.
A contract that gives the holder the right to buy a specified number of shares of a particular stock, stock index, or dollar face value of bonds at a predetermined price--called the "strike price"--on or before the option's expiration date. For this right, the holder (buyer) pays the writer (seller) a premium. The holder profits from the contract if the stock's price rises. If the holder decides to exercise the option (as opposed to selling it), the writer must give up ownership of the security. See: Call Premium; Covered Call Option; Option Premium; Options; Strike Price; Uncovered Call Option; Writer
A privilege giving its holder the right to demand the purchase of 100 shares of common stock at a fixed price any time within a specified period (the lifetime of the option). Also sometimes referred to as a buyer's option.
A contract that gives you the right - but not the obligation - to buy a share at an agreed price and date in the future. It is essentially a gamble that an asset will increase in value by more than the amount you paid for the option - if it does that you have made money.
An option which gives the buyer the right, but not the obligation to purchase the underlying asset at a pre-determined price, on or before a specific date. This means that if you hold a call option you can buy the underlying asset, but you do not have to if you do not wish to.
A contract that entitles the buyer/taker to buy a fixed quantity of commodity at a stipulated basis or striking price at any time up to the expiration of the option. The buyer pays a premium to the seller/grantor for this contract. A call option is bought with the expectation of a rise in prices. See Put Option.
A contract that gives the customer the right, but not the obligation, to purchase from the option seller a specified volume of electricity at some future point at an agreed-upon â€œexerciseâ€ or â€œstrikeâ€ price in exchange for a one-time premium payment to the seller. Used as a hedge against the possibility of rising prices in the forward (futures) market. A customer would want to exercise the option if the strike price specified in the contract is below the market price of power during the period covered by the option.
A call option confers the right but not the obligation to buy stock, shares or futures at a specified price within a predetermined time period. The buyer (taker) pays the seller (grantor) a premium for this.
A call option establishes the right to buy a specified quantity of the underlying security at a specified price any time during the duration of the option. You would buy a call option if you expect prices to rise.
A call option is a securities contract that gives an investor the right to buy a specified amount of a particular security at a predetermined price (the strike price) before a preset deadline. The deadline is known as the option's expiration date. For this right, the investor pays a premium to the seller of the call option. The investor profits from the contract if the price of the underlying stock increases. See: Put Option
A call option is a financial contract between two parties, the buyer and the seller of this type of option. Often it is simply labeled a "call". The buyer of the option has the right, but not the obligation to buy an agreed quantity of a particular commodity or financial instrument (the underlying instrument) from the seller of the option at a certain time (the expiration date) for a certain price (the strike price).