In options trading, call options are simply known as "calls". The buyer of a call option has the right, but not the obligation, to buy an agreed quantity of the underlying stock from the seller of that call option before the call option contract expires at a certain time (the expiration date) for a predetermined, agreed price (the strike price).
In layman terms, when you buy a call option, you have the right to buy the stock at the agreed price anytime you want to no matter what price that stock is trading at prior to the expiry of that call option.
For example, if you buy a Call option on a stock with a strike price of $10 and an expiration date 2 months later, you have the right to exercise the right to buy that stock at $10 no matter what price the stock may be before the 2 months period is up. This allows you to make a leveraged profit when the stock goes up.
回複:Stock trade---call 90%靠不住
所有跟帖:
• Thx! Inspiring!!! -BobV- ♂ (0 bytes) () 07/18/2009 postreply 13:54:38