What does it mean when a call option costs $0.00?

Asked 5 years ago

Some calls are showing 0.00 to buy, specifically LMND at above $110. There's most likely an obvious answer to this question, but does this mean I can buy free call options?

Buying call options Option price Free call option

Simon Mugo

Sunday, June 20, 2021

Call options are used to speculate on rising stock prices. Hence, if a call option costs $0.00, it means that investors believe that the stock will likely never rise to that level. An option that costs $0.00 could also indicate that the stock is already above the price quoted in the option.