From the course: Understanding Capital Markets

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Call options and stocks

Call options and stocks

From the course: Understanding Capital Markets

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Call options and stocks

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- [Instructor] One investment choice you may run into after you get started investing is what's called a call option. A call option gives you the right, but not the obligation to buy a particular stock at a particular price for some period time in the future. Let me show you what I'm talking about. So I'm here on the E-Trade website, and this information can be found in a variety of places. And I'm looking at General Electric and their options. Call options are one type of option, so if I turn to options expiring in July of 2019, I see the following page. And what this is going to show me is call options on the left hand side. These call options all have a strike price associated with them. That call option gives me the right to buy General Electric from someone else at the strike price. So I can buy GE if I hold these call options. I can buy GE from now until July 2019 for $10 per share. Notice, GE is currently…

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