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You can buy a call on the stock with a $20 strike price for $2 with an expiration in eight months. One contract costs $200, or $2 * 1 contract * 100 shares. Here’s the trader’s profit at ...
In finance, a call option, often simply labeled a "call", is a contract between the buyer and the seller of the call option to exchange a security at a set price. [1]
As the seller of a call option, you hope the stock price stays below the strike price, so that the option expires worthless and you keep the option premium received as your profit.
At stock prices above $22, the call writer loses money overall, losing not only the $200 premium, but also incremental money depending on where the stock closes at expiration.
The root symbol is the symbol of the stock on the stock exchange. After this comes the month code, A-L mean January–December calls, M-X mean January–December puts. The strike price code is a letter corresponding with a certain strike price (which letter corresponds with which strike price depends on the stock).
CTA – Call to action; CTO – Chief technology officer; CX – Customer experience; CXO – Any chief officer(s), x being a placeholder. C2B – Consumer-to-business; C2C – Consumer-to-consumer; C&F – Cost With Freight; CKM – Customer Knowledge Management; CTC – Cost to company; CUSIP number – Committee on Uniform Security ...
Payoffs from a short put position, equivalent to that of a covered call Payoffs from a short call position, equivalent to that of a covered put. A covered option is a financial transaction in which the holder of securities sells (or "writes") a type of financial options contract known as a "call" or a "put" against stock that they own or are shorting.
The stock market is accessible to everyone, and there are two ways to own stocks. Direct ownership You can buy stock in individual companies through a brokerage account .