From the course: Understanding Capital Markets (2019)

Unlock the full course today

Join today to access over 24,200 courses taught by industry experts.

Call options and stocks

Call options and stocks

From the course: Understanding Capital Markets (2019)

Start my 1-month free trial Buy for my team

Call options and stocks

“

- [Instructor] One investment choice you may run into after you get started investing is what's called a call option. A call option gives you the right, but not the obligation to buy a particular stock at a particular price for some period time in the future. Let me show you what I'm talking about. So I'm here on the E-Trade website, and this information can be found in a variety of places. And I'm looking at General Electric and their options. Call options are one type of option, so if I turn to options expiring in July of 2019, I see the following page. And what this is going to show me is call options on the left hand side. These call options all have a strike price associated with them. That call option gives me the right to buy General Electric from someone else at the strike price. So I can buy GE if I hold these call options. I can buy GE from now until July 2019 for $10 per share. Notice, GE is currently…

Contents