Options Contracts Guide
Options
Welcome to our guide introducing how buying call options contracts works.
Options contracts (or just options) are complex investments that give an investor the right, but not the obligation to buy/sell a stock.
In other words, instead of buying a stock directly, you are able to buy a “options contract”, which gives you the right to buy/sell the stock at your choosing.
However, for this right, you must pay a premium (fee). Nothing’s free in the financial markets!
Ultimately, options contracts can be used to both hedge risk or magnify risk – it all depends how they are used.
Again, this guide is only an introduction to buying call options specifically.
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