How much does call option cost?

Call options price. The purchase of call options involves a premium amount for completing the trading transaction. If the premium is $2 per share and the call option is for 100 shares at $60, the investor would pay a $200 premium for this transaction. Expiration date. Investors have the choice to select an expiration date for the contract.

Can a seller of a call option buy it back?

When you sell a call option, whether covered or uncovered, you create an open position. Options are traded in a double auction market, with a bid and asked price. Although there is a specific buyer and a specific seller for each option, there is no way to buy back the original option that you sold.

How do you sell to open call option?

at a predetermined price (the strike price) on or before an expiration date. The party that has a short position SELLS the call option and believes that the underlying asset’s price will decrease. As such, this party is opening an options contract by selling (sell to open) the opportunity to purchase the underlying asset at a predetermined price on or before an expiration date for a premium.