Call option
call
An option giving the holder the right to buy the underlying at a fixed strike price by expiry.
Call buyers pay premium upfront for upside exposure with capped downside (the premium). Call sellers (writers) collect premium but take unlimited upside risk if uncovered. Covered-call strategies (sell call against held underlying) are common in stablecoin-yield-overlay products.
Related terms
- OptionA derivative giving the holder the right (not obligation) to buy ([[call-option]]) or sell ([[put-option]]) at a fixed price by expiry.
- Put optionAn option giving the holder the right to sell the underlying at a fixed strike price by expiry.
- Strike priceThe price at which an option holder can exercise the right to buy (call) or sell (put) the underlying.