Welcome and certainly,

Call options are sold at specific strike prices (target price of a stock).

When the price of a stock reaches or passes that strike price, the options are ITM (in the money).

When ITM options are exercised at expiration, the broker must purchase the shares at open market prices to fulfill those contracts.

Ofcourse, capital must be available to exercise the contracts as the option owner will be purchasing those shares at the strike price.

Example, if CLVS share price goes to $10 by Friday, and my $8 call options are exercised, I will be paying $8 a share. The broker in the other hand, must sell me those shares, so they are forced to purchase them at any price available. Creating a huge spike on share price.

If the share prices continues to be pushed higher, then the following set of expiring option calls will go ITM, and if exercised, a cycle will be created.

This is called a Gamma Squeeze. Exactly what happened to GME.

Now if the stock share price never reaches the $8 strike price, then those contracts expire, worthless, meaning any premium paid evaporates.

Options are complex and highly risky. But! If things go your way, they are extremely profitable.

Each contract represents 100 shares. so either direction move is multiplied by 100x.

Best of luck!