Call options are a type of security that give the owner the right to buy shares of a stock or an index at a certain price by a certain date. That «certain price» is called the strike priceand that «certain date» is called the expiration date. A call option is defined by the following 4 characteristics:. A call option is called a «call» because the owner has the right to «call the stock away» from the seller. It is also called an «option» because the owner of the call option has the «right», but not the «obligation», to buy the stock at the strike price. In other words, the owner of the call option also how does a call option make money as «long a call» does not have to exercise the option and buy the stock—if buying the stock at the strike price is unprofitable, the owner of the call can just let the option expire worthless. The most attractive characteristic of owning a call option is that your profit...