What does it mean when a call option costs $0.00?

Asked 4 years ago

Some calls are showing 0.00 to buy, specifically LMND at above $110. There's most likely an obvious answer to this question, but does this mean I can buy free call options?

Simon Mugo

Sunday, June 20, 2021

Call options are used to speculate on rising stock prices. Hence, if a call option costs $0.00, it means that investors believe that the stock will likely never rise to that level. An option that costs $0.00 could also indicate that the stock is already above the price quoted in the option.