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Buying A Call Option Example. What Are Call and Put Options? Call options are a type of option that increases in value when a stock rises.

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Call options grant you the right to control stock at a fraction of the full price. If you buy several options and the stock rises significantly, you can take partial profits by selling a portion of your overall position. Instead of buying shares of the stock, you buy a call option, giving you the right to buy the stock at a lower or equal price for a certain period of time.

For example, a call option goes up in Exercise call option if the stock price rises above the strike price.

Buying a call option feels a lot like wagering.

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A call option is purchased through a broker who receives the An Example of a Call Option in Action. Buying a call option is like getting a chance to buy the car you want at a good price ??? But only if you act quickly. Buying call options is a bullish strategy using leverage and is a risk-defined alternative to buying stock.

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