One of the key differences between options and stocks is that when you buy stocks, you take ownership of a slice of the company. Within options trading, you buy a contract, which gives you the right to buy or sell within a specified time frame. Investors can also benefit from dividends when purchasing stocks, and there is no limit on the lifespan of the stock, provided that the company continues to trade. If you buy options, you’ll need to take action before or on the expiry date, which increases the risk.