What Is a Call Option? (Simple Explanation for Beginners)

Oct 27, 2025

In 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.

βœ… The upside is that you can profit when a stock rises — without having to buy 100 shares.
❌ 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.

 

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