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Call Option

A call option gives the buyer the right, not the obligation, to buy the underlying at a fixed strike price, used to bet on a price rise without holding the asset.

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What It Means

A call option gives its buyer the right, but not the obligation, to buy the underlying asset at a fixed strike price on or before expiry. Traders buy calls to bet on a price rise, without needing the capital to hold the underlying outright.

Example

Say Nifty is at ₹24,500 and you buy a 24,600 call for a ₹120 premium. If Nifty rises to 24,900 by expiry, the call is worth at least ₹300, putting you in profit after the premium paid. If Nifty stays below 24,600, the call expires worthless and your loss is capped at the ₹120 you paid.

  • Put Option — the opposite bet, on a price fall
  • Strike Price — the fixed price a call is written against
  • Open Interest — tracked separately for calls and puts at every strike
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