How To Buy Stock Options May 2026

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

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." how to buy stock options

Once approved, you’ll look at an "Option Chain"—a digital menu of available contracts. You need to pick three things: You’re betting the stock price will go down

The price you think the stock will hit (e.g., "I think NVIDIA will hit $150"). Navigate the Option Chain This is the price

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Start small. Many beginners lose their initial capital by "swinging for the fences" on contracts that expire in just a few days.