You’ll answer questions about your net worth, investment goals, and experience.
Start small. Many beginners lose their initial capital by "swinging for the fences" on contracts that expire in just a few days.
Options don't last forever. They can expire in days, months, or years. The further away the date, the more expensive the option.
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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:
The price you think the stock will hit (e.g., "I think NVIDIA will hit $150").
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: