What is a call option?

A call option is a financial contract that gives the holder the right, but not the obligation, to buy an underlying asset at a predetermined price (strike price) before the option expires.

When should I buy a call option?

Buy a call option if you expect the price of the underlying asset to rise significantly before the expiration date, allowing you to purchase it at a lower price (strike price) and sell it at a higher market price.

What happens if I don’t exercise my call option?

If you don’t exercise the call option before the expiration date, it will expire worthless, and you will lose the premium paid for the option.

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Options Trading

What is CALL OPTION?

CALMAR RATIO

Calmar Ratio measures risk-adjusted return by comparing the annualized return to the maximum drawdown, providing insights into performance relative to worst-case losses. A higher Calmar Ratio indicates better performance relative to risk.