Mid-month, XYZ rallies to $120.01 . Immediately , your call option is canceled (barred). It is now worthless, even if XYZ later falls back to $105 or rises to $130. The option is gone. Why "Barred"? Why trade this? The term "barred" means the right to buy (the call) is barred (prohibited/voided) if the barrier is hit.
A barred call is a cheap, leveraged bullish bet that works as long as the price doesn't "bar" (cancel) your right by hitting a specific ceiling. It's a tool for traders who have a directional view and a strong belief that the asset will not make an explosive upward move before expiration. barred call meaning