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What Is a Call Option? Examples and How to Trade Them in 2019

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If the underlying stock declines below the strike price at expiration, purchased call options expire worthless. We'll note here that relatively few options actually expire and see shares change hands. You can check out some of the best places to trade in options with Investopedia's list of the best brokers for options trading. Short-selling a stock gives you a short position. Buying a call option gives you a potential long position in the underlying stock. No garbage dump is coming nearby. Now, back to our put example: An options chain is where all options contracts are listed. Long Call One of the more traditional strategies, a long call essentially is a simple call option that is betting that the underlying security is going to go up in value before the expiration date of the contract.




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