How To Buy Stock Options [LIMITED ✔]

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 .

This is the price you pay for the contract. Note: One option contract usually controls 100 shares . If the premium is listed as $2.00, the contract will actually cost you $200. 4. Place Your Order When you’re ready, you’ll select "Buy to Open." how to buy stock options

Once approved, you’ll look at an "Option Chain"—a digital menu of available contracts. You need to pick three things: You can't just buy options the same way

The price you think the stock will hit (e.g., "I think NVIDIA will hit $150"). Note: One option contract usually controls 100 shares

You’ll answer questions about your net worth, investment goals, and experience.

You’re betting the stock price will go up . A Call gives you the right to buy the stock at a set price.

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: