Call option
A call option is the right to buy at the strike before expiry. Strike 24,200 and premium 80 means profit only above 24,280, because in the money is not in profit; the Module 0 quiz works the full sum. Before results you can be right on direction and still lose on the call. If any of this is new, start with Varsity and come back.
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In the help centreSee how leverage and margin work on MochatradeRelated terms
- Options contractAn options contract gives the buyer the right, not the obligation, to buy (call) or sell (put) at a strike before…
- Expected moveThe expected move is the size of move the options market is pricing for an event: add the at-the-money call and put…
- Cost of carryCost of carry is what it costs to hold a position over time: storage, insurance and interest, minus any income. It is…
- IV crushIV crush is the drop in an option's price when the uncertainty it was charging for disappears, typically the morning…
- Perpetual futuresPerpetual futures are contracts that track an asset's price with no expiry date. Expiry is what pulls a normal future…
- Perpetual premium (basis)The perpetual premium, or basis, is the gap between a perpetual's price and its reference. A positive premium means…
Educational content only. Not investment advice. Leveraged products magnify losses as well as gains.