In the world of finance and investing, call options are a popular and versatile instrument that can offer significant opportunities for traders and investors. These financial derivatives provide individuals with the right, but not the obligation, to purchase an underlying asset, such as stocks, at a predetermined price within a specified time frame. Let’s delve into what call options are, how they are used, and the potential risks and benefits associated with them. A call option grants its holder the privilege to buy a specific quantity of an underlying asset, known as the “strike” or “exercise” price, at or before a predetermined expiration date. The buyer of the call option pays a premium to the option seller (or writer) to acquire this right. The underlying asset can be anything that has options traded on it, but the most common are stocks. Call options can be employed for various purposes, depending on an investor’s strategy and market expectations 1. Speculation Traders may buy call options if they anticipate that the price of the underlying asset will rise significantly before the option’s expiration date. By doing so,