Options don't last forever. They can expire in days, months, or years. The further away the date, the more expensive the option.
You’re betting the stock price will go up . A Call gives you the right to buy the stock at a set price. how to buy stock options
Start small. Many beginners lose their initial capital by "swinging for the fences" on contracts that expire in just a few days. Options don't last forever
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 You’re betting the stock price will go up
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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."