: The stock or ETF the contract is betting on (e.g., TSLA or SPY).

: Options lose value every day they get closer to expiration. You aren't just betting on direction ; you are betting on time . 3. Step-by-Step: How to Place the Trade

: A Call gives you the right to buy at a specific price (bullish); a Put gives you the right to sell (bearish).

The Beginner’s Guide to Buying Your First Options Contract

: Unlike stocks, options have a "best by" date. If your prediction doesn't come true by this day, the contract expires worthless. 2. Understand the Cost (The Premium) When you buy an option, you pay a premium .