What is a Call Option? Call options are financial contracts that give the option buyer the right, but not the obligation, to buy a stock, bond, commodity, or other asset or instrument at a specified price within a specific time period. The stock, bond, or commodity is called the underlying asset. A call buyer profits when the underlying asset increases in price. A call option may be contrasted with a put option, which gives the holder the right to sell the underlying asset at a specified price on or before expiration. Related articles What is a Call Spread? What is Carry? What is a Gamma Profile? What is a Condor? What is Implied Skew?