If you have the cash, you can use the option to actually buy (or sell) the 100 shares at the strike price.
You’re betting the stock price will go down . A Put gives you the right to sell the stock at a set price. 3. Navigate the Option Chain
Brokers assign "levels" (usually 1–4). Level 1 might only let you write covered calls, while higher levels allow for more complex (and risky) strategies. 2. Learn the Two Main Flavors There are only two types of options you need to know: how to buy stock options
If your bet was wrong, the option might become worthless. In this case, you simply lose the money you paid for the premium.
Options don't last forever. They can expire in days, months, or years. The further away the date, the more expensive the option. If you have the cash, you can use
You’re betting the stock price will go up . A Call gives you the right to buy the stock at a set price.
This is the price you pay for the contract. Note: One option contract usually controls 100 shares . If the premium is listed as $2.00, the contract will actually cost you $200. 4. Place Your Order When you’re ready, you’ll select "Buy to Open." Place Your Order When you’re ready
You can't just buy options the same way you buy shares of Apple or Tesla. Because options are more complex and carry more risk, brokers require you to apply for .