Call Options

A call option is a financial contract that gives the buyer the right, but not the obligation, to purchase a specific stock or asset at a predetermined price (called the strike price) within a certain period. Investors buy call options when they believe the asset's price will rise, allowing them to buy at the lower strike price and potentially profit from the difference. Sellers of call options collect a premium for offering this right. It’s a way to potentially benefit from upward price movement without actually owning the stock until the option is exercised.