Buy Options | How To

: 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 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. how to buy options

: Select a broker that supports options, such as Fidelity , Tastytrade , or Charles Schwab . : Use a Straddle (buying both a call

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

: 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".

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