By TheStreet Staff What Are Call Options and How Do They Work? A call option is an options contract that grants its buyer the right (but not the obligation) to buy a specific quantity (usually 100 shares) of an asset (like a stock) at a specific price on or before the date of the contract’s expiration. In exchange for this right, the option buyer pays the option seller a premium. A call option is considered a derivative security because its value is derived from the value of an underlying asset (e.g., 100 shares of a stock). Investing in a call is like betting that the price of a stock will go…