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.

What does Calls mean in stocks?

What Is a Call Option? Call options are financial contracts that give the option buyer the right, but not the obligation, to buy a stock, bond, commodity, or other asset or instrument at a specified price within a specific time period. The stock, bond, or commodity is called the underlying asset.

What are puts and calls?

Call and Put Options

A call option gives the holder the right to buy a stock and a put option gives the holder the right to sell a stock. Think of a call option as a down payment on a future purchase.