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Futures & options
Also called: Call, CE
A call option gives its buyer the right, but not the obligation, to buy the underlying at the strike price on or before expiry. The buyer pays a premium; the seller (writer) collects it and takes on the obligation.
You buy a Nifty 24,000 call (CE) for a premium of 150 points. If Nifty settles at 24,300 on expiry, the call is worth 300 points, a gain of 150 points per unit times the lot size. If Nifty settles below 24,000, the call expires worthless and the premium is lost.
A call option gives its buyer the right, but not the obligation, to buy the underlying at the strike price on or before expiry. The buyer pays a premium; the seller (writer) collects it and takes on the obligation.
You buy a Nifty 24,000 call (CE) for a premium of 150 points. If Nifty settles at 24,300 on expiry, the call is worth 300 points, a gain of 150 points per unit times the lot size. If Nifty settles below 24,000, the call expires worthless and the premium is lost.
No. Call option describes one aspect of a company, a price or a contract, and it is best read alongside other numbers and the business itself. Jivani Markets is a research and education platform; it does not give buy, sell or hold recommendations.