GO
Loading...

Call Options: CNBC Explains

For many sophisticated investors, trading options is a routine practice that can be hugely profitable. But did you know that retail investors can also transact options contracts on the open market? It's a strategy with potential to enhance investors' portfolios and help them better navigate the market. Want to succeed at trading options? You need to understand exactly how these contracts work. Salman Khan of the Khan Academy explains call options: contracts you purchase if you think a stock will go up in the near future.

From the first video, you’ll understand:

  • How call options compare to buying a stock
  • How options can help minimize risk for investments
  • What the profit/loss diagram looks like for call options



From the second video, you'll understand:

  • What the profit/loss diagram looks like for call options
  • How the price of an option influences buying decision

Contact CNBC Explains

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    To learn more about how we use your information,
    please read our Privacy Policy.
    › Learn More

Latest Special Reports

  • A logo sits on a sign at the World Economic Forum in Davos, Switzerland, on Thursday, Jan. 23, 2014.

    Coverage of the 2015 World Economic Forum’s annual meeting in Davos, Switzerland.

  • NYSE traders

    Go inside the world of exchange-traded funds with CNBC's coverage from the ETF industry's biggest event of 2014.

  • Advisor-centric content with guest columns covering practice management, investment strategies and marketing/social media.

Central Banking Explained

Corporate Accounting Explained