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.
: Transfer cash to cover the premium (the cost of the contract) and any potential brokerage fees. 2. Choose Your Strategy Decide on your outlook for a specific stock: how to buy options
: The deadline for the contract. Options lose value every day as they approach expiration (time decay). Buying options allows you to speculate on a