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
Options markets move fast and the "spread" (the gap between what people want to pay and what they want to sell for) can be wide. Always use a limit order to ensure you don't overpay. 5. Manage the Exit Once you own the option, you have three choices: 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
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 .
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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: