Buying A Call | Option

"There," Leo thought. "I’ve bought the , but not the obligation , to buy those shares at $160, no matter how high the price goes."

AI responses may include mistakes. For financial advice, consult a professional. Learn more buying a call option

Leo’s option was now "in the money." Because he held the $160 strike call, he could technically buy the shares for $160 and immediately sell them for $200, netting a massive profit. Alternatively, he could simply sell the option itself, which had climbed in value from $5 to over $40. "There," Leo thought