Call Option

A call option is a contract that gives you the right—but not the obligation—to buy a stock at a set price by a specific date. Think of it as a reservation: you pay a small upfront fee (called the premium) to lock in a purchase price, and you can decide later whether to actually buy. You'll encounter call options when exploring ways to bet on stocks rising without buying them outright. They matter because they let you control a larger position with less money, though they come with real risks—you can lose your entire premium if the stock doesn't move as expected. For example, you might buy a call option on TechCorp stock at $50, betting it'll rise above that price before your option expires.