Making Money With Options

Options are a tricky game in the stock market. Many people would love the chance to invest in this very lucrative yet very scary investment. Some people have an idea that they offer large payouts but can't seem to figure out the damned things.
Well, be easy many have tried many have failed and im here to tell you it is hard but impossible? NO! Let me first start out explaining an option. An option is simply you buying a contract with the option to buy the stock at the strike price. You usually pay a premuim for this contract. Just like with any type of investment when you leverage there is sometimes a premuim for the good ones just think of it that way. Every options contract is 100 shares of XYZ company, whatever that company maybe. When you buy one contract you are buying the option to buy 100 shares if the strike price is hit and if not the option expires worthless. What does this mean for you the investor? Simply that you are buying into the stock for $1000 instead of risking $10000. All it is is leverage. You are only required to pay for the premuim up front(commisions and options contract fees also) but besides that you still benefit from the up and down swings in the securities movement for less. Honestly this is a basic run down of the options game. The best thing is that because of the movement in the share price of stocks usually the price of the premuims move also and this means you never really have to be out any money. Why? Because when the stock moves so does the price of the premuim so you can make out like a bandit. Remember though trading options is like swimming with sharks have a plan stick to it. Get more knowledge then this small article and try it. Limit you losses always and maximize your gains.