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.





Write an answer...

Cancel

Please follow our  Community Guidelines

Related Articles

How Does Stock Market Tax Work?

How Does Stock Market Tax Work?

Sofia Thai

April 23, 2021

Know This About the IronFX Broker

Know This About the IronFX Broker

Filip Dimkovski

June 15, 2021

Can't find what you're looking for?