All lessonsLesson 2 · Step 1/5
Calls & Puts
Calls: betting on up
A call option gives you the right to BUY the underlying at the strike price.
You buy a call when you think the stock will rise above the strike before expiration. If SPY is at $580 and you buy the $590 call, you profit if SPY pushes past $590.
The more SPY rises above your strike, the more your call is worth.
Memory hook
Call = you can 'call' the stock toward you (buy it). Bullish.
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