Buying A Call Option Example at Buying

Buying A Call Option Example. Hold it until it expires Identify the stock that you think is going to go up in price;

For example, the buyer of a stock call option with a strike price of $10 can use the option to buy that stock at $10 before the option expires. Here’s an example of buying a call option: Let's look at an example:

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Basically, an option's premium is its intrinsic value + time value. Open an options trading account; Now that you have a better understanding of what options are, what calls and puts are, let's look at how to buy a call option in a little more detail. Buying call option example on charles schwab.