A short tutorial, covering the basics of Call Options by Trader - Turned - Teacher, Imran Lakha.
In this easy to understand tutorial, the following points are covered:
A Call is the right, but not the obligation, to buy an underlying for a fixed price (strike) at a given maturity date
Non-linear pay off is unlike stock/future position
It will cost a premium to buy it
If premium = 5, break even is (strike + premium) = 105.
You will start to make make PNL above 105 in the stock
Most popular use of Calls is selling against existing stock positions to earn income (Covered Call Writing)
Therefore we have a natural supply of Upside Calls