How To Buy Stock Options -

Options don't last forever. They can expire in days, months, or years. The further away the date, the more expensive the option.

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: Options don't last forever

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

If your bet was wrong, the option might become worthless. In this case, you simply lose the money you paid for the premium.