What is Call Option?
A call option gives the buyer the right (but not the obligation) to buy an asset at a predetermined price before a specific date — used for bullish bets and hedging.
Formula
Call Payoff = max(0, Stock Price at Expiry - Strike Price) - Premium Paid
How to Interpret
Buying calls is a leveraged bullish bet with limited downside (you only lose the premium). Selling calls generates income but has unlimited risk if the stock surges.
Typical Ranges
In India, Nifty and Bank Nifty options are the most liquid. Weekly expiry options dominate volume.