Bybit Options Lesson: Understanding Call Options
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Key Takeaways:
A call option is an agreement that allows a buyer to predict that the value of an asset will appreciate, with an agreed-upon amount for a particular price and date to earn the premium.
With a call option, the buyer earns a premium based on the buy/sell call contract, particularly when the underlying asset increases in market value.
A crypto call option is a contract or tool that confers on a person the choice (rather than the obligation) to buy a specific asset at a preset price, on or before a certain time (known as the expiration date).
To buy a call option, the buyer must pay the seller a “premium fee.” Each crypto options contract comprises one cryptocurrency, bought at a predetermined price. You don’t have to own the particular underlying asset before you can buy or sell its corresponding call option. It should be noted that this transaction period lasts only for a specified time frame, as the buyer can only exercise their call on or before the expiration date.