What Is a Call Option? (Simple Explanation for Beginners)
Oct 27, 2025In this week’s video, I explained what a call option is — one of the most basic, powerful, and misunderstood tools in the options market.
A call option gives you the right (but not the obligation) to buy a stock at a fixed price, called the strike price, before a set date, called the expiration.
Here’s a simple example:
Let’s say Apple is trading at $180, and you buy a call option with a strike price of $185. If Apple goes to $195, your option becomes valuable — because you can buy the stock at $185 while others have to pay $195. You can either exercise your right or just sell the option for a profit.
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The upside is that you can profit when a stock rises — without having to buy 100 shares.
β The downside? If the stock stays below the strike price, the option expires worthless — and you lose the premium you paid.
In this Yiddish-language lesson, I explain:
- The parts of a call option
- How much you can make or lose
- Why people use them
- How it all fits into a smart strategy
This video is part of a full beginner series, where we’re learning the stock and options market clearly, calmly, and without hype — so you can make decisions from knowledge, not from pressure.
Watch it now — and leave a comment with your questions. Your feedback may inspire the next lesson.