call
noun
Call — the shortened, common term for the right to buy at a fixed price
Definition
The option to buy a given stock (or stock index or commodity future) at a given price before a given date
In depth
A call, in this specific financial shorthand, names the option to buy a given stock, stock index, or commodity future at a given price before a specified expiration, functioning as the common, abbreviated form of 'call option' in everyday trading conversation and financial writing. Context within financial discussion almost always makes this specialized meaning clear.
Origin
The word shares its root entirely with 'call option,' both drawing on the sense of 'calling away' or demanding delivery of an asset. Its frequent use as simple shorthand within financial conversation reflects how thoroughly specialized professional vocabularies often compress formal terminology into brief, contextually understood abbreviations.
Usage examples
"He bought a call on the stock, confident it was significantly undervalued by the broader market."
"Traders discussed the day's most active calls, noting unusual volume in several technology sector contracts."
"Selling a call against existing shares is a common strategy for generating modest additional income."
How to use it
Call, used in this financial sense, is common shorthand within trading and investment contexts, where the surrounding discussion of options, strikes, and expirations makes the specialized meaning clear, distinct from the word's many other unrelated common uses.
Related concepts
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