If you have the cash, you can use the option to actually buy (or sell) the 100 shares at the strike price.
Options markets move fast and the "spread" (the gap between what people want to pay and what they want to sell for) can be wide. Always use a limit order to ensure you don't overpay. 5. Manage the Exit Once you own the option, you have three choices: how to buy stock options
The price you think the stock will hit (e.g., "I think NVIDIA will hit $150"). If you have the cash, you can use
You’re betting the stock price will go down . A Put gives you the right to sell the stock at a set price. 3. Navigate the Option Chain If you have the cash