If you have the cash, you can use the option to actually buy (or sell) the 100 shares at the strike price.
Once approved, you’ll look at an "Option Chain"—a digital menu of available contracts. You need to pick three things:
The price you think the stock will hit (e.g., "I think NVIDIA will hit $150"). how to buy stock options
You’re betting the stock price will go up . A Call gives you the right to buy the stock at a set price.
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 you have the cash, you can use
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 .
You’ll answer questions about your net worth, investment goals, and experience. You’re betting the stock price will go up
If the stock moves in your favor and the option's value increases, you can "Sell to Close" to pocket the profit.