What is call option in stock market?

In the stock market, a call option is a contract that gives the holder the right, but not the obligation, to buy a certain number of shares of a stock at a specific price (called the strike price) on or before a specific date (called the expiration date). The seller of the call option, also known as the writer, is obligated to sell the shares if the holder exercises the option.

Call options are used as a way to hedge against potential gains in the stock market, or as a way to generate income through the sale of the options themselves. They can also be used as a speculative investment, with the trader betting that the price of the underlying stock will increase.