What Does It Mean When a Call Option with a Strike Price of 100 is Priced at 20?

Trading and investing in options can be a promising way to enhance one’s portfolio. To get started, it’s essential to understand the fundamental concepts of call options, strike prices, option premiums, and how to decode and analyze these elements to make informed decisions and predictions. This article aims to break down these topics, providing investors with a clear and structured insight into call options trading.