How - To Buy Options

: The deadline for the contract. Options lose value every day as they approach expiration (time decay).

: Buy a Put . This gives you the right to sell 100 shares at the strike price. how to buy options

: Unlike stocks, you must apply for options trading. Brokers will ask about your financial situation, experience, and goals to assign you an "options level". : The deadline for the contract

: Transfer cash to cover the premium (the cost of the contract) and any potential brokerage fees. 2. Choose Your Strategy Decide on your outlook for a specific stock: This gives you the right to sell 100

: The price at which you can buy/sell the stock. ITM (In-The-Money) options are more expensive but more likely to be profitable.

: Buy a Call . This gives you the right to buy 100 shares at a set price (the strike price ).

: Use a Straddle (buying both a call and a put at the same strike) if you expect a massive swing but aren't sure of the direction. 3. Select Contract Details Use an Option Chain on your platform to pick: