Buying options allows you to speculate on a stock's price movement with less capital than buying the shares outright, but it comes with a high risk of losing your entire investment if the stock doesn't move in your favor before the contract expires.
: The price at which you can buy/sell the stock. ITM (In-The-Money) options are more expensive but more likely to be profitable. how to buy options
: 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: Buying options allows you to speculate on a
: 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: : Use a Straddle (buying both a call
: Buy a Put . This gives you the right to sell 100 shares at the strike price.
: Unlike stocks, you must apply for options trading. Brokers will ask about your financial situation, experience, and goals to assign you an "options level".
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