You buy a call if you expect the stock price to rise significantly. You pay a fee called a Premium .
Short-term dates (weeks) are cheaper but riskier; long-term dates (months/years) give you more time to be right. buying and selling call options
Stock XYZ is at $100. You buy a $105 Call for $2. If XYZ hits $110, your option is worth at least $5. You turned $2 into $5 (a 150% gain), while the stock only moved 10%. 3. Selling Call Options (Bearish/Neutral) You buy a call if you expect the
You sell (or "write") a call if you think the stock will stay flat or drop. You receive the Premium upfront from a buyer. buying and selling call options