Saransh explains the basics of a stock option, particularly a call option and how it works, what is the logic behind it, and how it can be a good return on investment if used correctly.

Stock options are contracts that allow investors to buy or sell stocks at agreed-upon prices. They are a riskier play than stocks but can give a better return on investments once you understand how they work and how to use them. We will discuss what a call option is in this video and in the next ones we will discuss how to choose the right strike price, the expiry date, and how to trade options.

Get a free stock from Robinhood