Stock Options | How To Buy

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

If your bet was wrong, the option might become worthless. In this case, you simply lose the money you paid for the premium. how to buy stock options

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: You’re betting the stock price will go down

Once approved, you’ll look at an "Option Chain"—a digital menu of available contracts. You need to pick three things: Navigate the Option Chain If your bet was

The price you think the stock will hit (e.g., "I think NVIDIA will hit $150").