Definition of call option in English:

Share this entry

call option

Pronunciation: /ˈkôl ˈäpSHən/


Stock Market
An option to buy assets at an agreed price on or before a particular date.
Example sentences
  • A call option that gives you the right to acquire 100 shares of Microsoft at $50 for the next three months costs about $550.
  • By buying a call option, the investor is again making a bet that the underlying stock will be trading at a price higher than current market prices, so they're locking in the ability to buy at a cheaper rate.
  • The call option allows you to control the same 100 shares for substantially less than it cost to purchase the stock outright.

For editors and proofreaders

Syllabification: call op·tion

Share this entry

What do you find interesting about this word or phrase?

Comments that don't adhere to our Community Guidelines may be moderated or removed.