Beginners should sacrifice some profit potential and lower their risk by buying in the money options. Under no circumstances should beginning option traders buy out of the money options without professional advice. Trade in puts as well as calls. Beginners usually only bet on bullish calls on an advancing stock. But with the widespread trading of put options, you can take a bearish position by buying a put and enjoy the advantage of limited risk offered by all options.
Puts are also generally cheaper than calls.
Don't overcommit your funds. By limiting your exposure you can act rationally and sleep soundly, neither of which is possible when your nest egg is at risk in the options market. Don't put all of your eggs in one basket. Also, invest in both calls and puts. Don't pyramid your option trading profits.