Each option contract will have a specific expiration date by which you must exercise their option. The stated price on an option is known as the strike or exercise price.
If you bought a call option, your call will be profitable if the market price of the stock goes above the strike price, since you can buy the stock at a price that is lower than the current market price. However, if the value of the stock stays below your strike price, your options contract will expire worthless.
Please note that you are not actually buying shares of the stock unless you exercise your contract. You are buying a contract that grants you rights to purchase stocks at a specific price on or before a certain date.
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