Investing Dictionary

Owning the underlying asset and selling a call option on that asset In short: A covered call is a use of options whereby an investor

What you pay to own the option In short: An option premium is the price of an option contract. That is, the amount the option

In short: A strike price is the predetermined set price at which the underlying assets of an options contract can be bought or sold at

In short: An expiration date in futures and options (called derivatives) is the last day a futures or options contract is valid. On the expiration

The right to sell but not the obligation In short: A put option is a financial instrument that provides the buyer the right but not

The right to buy but not the obligation In short: A call option is a financial instrument that provides the buyer the right but not

The right but not the obligation In short: A stock option represents the right but not the obligation to buy or sell a stock at