How To Buy Options In Stock Market Today

Unlike stocks, trading options requires a specific approval process from your broker due to the higher risks involved.

: The date the contract becomes void. If the stock hasn't moved as expected by this date, the option may expire worthless, and you lose the premium paid. 2. Preparing to Trade

: This is the price you pay to purchase the option. It is quoted per share, so a $2.00 premium actually costs $200 per contract (100 shares x $2.00).

: The fixed price at which the option allows you to buy or sell the stock.

: Most brokers assign levels based on your experience. Beginners typically start at Level 2 , which allows for basic buying of calls and puts.

Options are contracts that give you the , but not the obligation, to buy or sell 100 shares of an underlying stock at a set price by a specific date.