You can't just buy options the same way you buy shares of Apple or Tesla. Because options are more complex and carry more risk, brokers require you to apply for .
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: how to buy stock options
The price you think the stock will hit (e.g., "I think NVIDIA will hit $150"). You can't just buy options the same way
Start small. Many beginners lose their initial capital by "swinging for the fences" on contracts that expire in just a few days. Level 1 might only let you write covered
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."