1. What is a Call Option?

A call option is a contract that gives you the right (but not the obligation) 

to buy a stock at a certain price (called the strike price) 

before a set date (the expiration date).

• Buyer of a call = bets the stock will go up.
• Seller of a call = bets the stock will stay flat or go down.

2. Key Terms You See

• Strike Price: The agreed price where you can buy the stock.
• Expiration Date: The last day the option is valid (your screen shows Sep 5, Sep 12, Sep 19, etc.).
• Premium: The price you pay to buy the option (e.g., $0.07 for the $2.5 Call).
• Breakeven: Strike price + premium = the stock price you need at expiration to not lose money.

3. Example With Your Screenshot

Stock price: $2.25

Option: 

$2.5 Call (expires Sep 5)

• Cost (premium): $0.07 per share
• Total cost: $7 (because each contract = 100 shares → $0.07 × 100)
• Breakeven: $2.57
• Meaning:
  
• If FFAI rises above $2.57 by Sep 5, you make profit.
• If it stays below $2.5, your option expires worthless and you lose your $7.
• 
  

Option: 

$2 Call (expires Sep 5)

• Cost (premium): $0.29
• Breakeven: $2.29
• Meaning:
  
• Safer since the strike is close to current price ($2.25).
• You pay more, but you only need FFAI to rise above $2.29 to profit.
• 
  

4. How You Make Money

✅ If stock goes up above breakeven → your option gains value. You can:

• Sell the option contract for profit (most common).
• Exercise the option (rare in short-term trading) and actually buy shares at the strike.

❌ If stock goes down or flat, the option loses value and can expire worthless.

5. Risk vs Reward

• Buying Calls: Risk is limited (only the premium you pay). 
• Profit potential is unlimited if the stock skyrockets.
• But most short-term options expire worthless, so timing is everything.

👉 Quick check for you:

Would you like me to make a step-by-step example (like: “If you buy the $2.5 Call at $0.07, here’s how much you’d gain/lose if FFAI closes at $2.30, $2.50, $2.70, $3.00”) so you see the profit/loss clearly?