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Investment
Call Option
A contract that gives you the right (but not the obligation) to buy a stock at a fixed price before a certain date.
Call options are used when you expect the stock price to rise. They give huge leverage — you can control 100 shares for a small premium. However, they expire and can become worthless if the stock doesn’t move enough.
It's a ticket that lets you buy something at today's price even if the price goes way up later.
Real world: You buy a call option on Tesla with a £200 strike price. If Tesla rises to £280 before expiry, you can buy at £200 and immediately sell at £280, making a big profit. If it stays below £200, you simply let the option expire and only lose the premium you paid.
💡 Call options let you bet on rising prices with limited risk but unlimited upside.