Glossary term

Call option

In plain English

A contract that gives the buyer the right to buy a stock at a fixed price by a fixed date. Used to gain upside exposure with limited downside, or to write "covered calls" against an existing position.

Educational only. TrustFirst is not a registered investment adviser and does not provide personalized investment advice. This definition is written to teach the concept; it is not a recommendation to take any specific action.