How a call option works
A call option works by guaranteeing a price at which you can purchase the underlying asset until your set expiry date – but unlike futures, not requiring you to buy the asset if the trade never earns a profit. Instead, if the asset’s price never exceeds the strike price of your option, you can leave it to expire and lose only what you paid for the option in the first place. This is known as the premium.
If the asset’s price does exceed the strike price, you can fill your option by buying the asset for less than its current market value.