Welcome to our channel! In today’s video, we’re diving into the world of options trading, specifically focusing on call options. If you’ve ever wondered how investors can leverage their capital to potentially profit from stock price movements, this video is for you!
**What are Call Options?**
Call options are financial contracts that give the buyer the right, but not the obligation, to purchase a stock at a predetermined price (known as the strike price) before a specified expiration date. They are a popular tool for investors looking to capitalize on upward price movements in stocks.
**Real-Life Example:**
To make this concept more relatable, we’ll walk you through a fictitious scenario involving Karen and John on housing sales. This should help you understand the concept of call options more easily.
**Why Should You Care?**
Understanding call options can open up new strategies for your investment portfolio and help you manage risk effectively. Whether you're a beginner or looking to refine your trading skills, this video will provide valuable insights.
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