Investors use options to hedge risk or to speculate. To get started, you will need a brokerage account that's approved for options trading. If you already have a brokerage account with a broker that supports options, you can fill out an application to enable options. After you provide details about your investment objectives, trading experience, and financial situation (e.g., annual income, employment info, net worth, and total net worth), the broker will review your application and either approve or deny it. If you are approved, the broker will let you know which options level you're approved to trade. If your current broker doesn't support options (or you want to try a different broker), you can apply for options trading after your standard brokerage account is approved. Depending on your broker and options strategy, you may also need approval for margin privileges. Once you are approved for options trading, the next step is to decide which options you want to trade. The type of options contract you trade depends on the direction you expect the underlying stock to move: If you expect the stock price to rise: buy a call option, sell a put option If you expect the stock price to fall: buy a put option, sell a call option If you expect the stock price to remain stable: sell a call option or sell a put option After that, you need to pick the option strike price. Options quotes (aka an "option chain" or "matrix") list the available strike prices, which are based on the underlying stock's price. The strike price you pick reflects where you think the stock's price will move during the option's lifetime. You also have to choose an option time frame: the expiration date after which the option will expire and become worthless. Expiration dates range from days to months to years. In general, the shorter the time frame, the riskier the option.