What are call options?
A call option provides the ability to buy the underlying asset. If an investor believes a stock price is going to increase, he or she may retain a call option in order to benefit from the stock’s rise.
In addition, a call option may also be sold short either naked or as a part of a position. When selling a call option, the seller has the obligation of guaranteeing that upon assignment they will deliver the underlying security.?
Here’s a good example of using Apple call options?and?trades in DRDN.?