- A call option is a contract that gives you the right, but not the obligation, to buy a stock at a set price (the strike) by a set date (the expiration).
- The buyer pays a fee called the premium. If the stock is at or below the strike at expiration, the option expires worthless and the buyer loses the whole premium.
- All else equal, a call's time value falls as expiration approaches. Its market price can still rise or fall as the stock price and other factors change.










