A Call Option | Buying

He opened his brokerage app and selected the call with an expiration date two months away. The premium was $5 per share. Since one option contract represents 100 shares , he paid $500.

"There," Leo thought. "I’ve bought the , but not the obligation , to buy those shares at $160, no matter how high the price goes." buying a call option

Three weeks later, the product launch was a sensation. Nebula Tech’s stock surged to . He opened his brokerage app and selected the

Leo sat in his home office, staring at the ticker for . The stock was trading at $150 , but with a major product launch scheduled for next month, Leo was convinced it would skyrocket. He didn't want to buy 100 shares outright—that would cost him $15,000. Instead, he decided to buy a call option . "There," Leo thought