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Buyers of puts are betting that the price of the stock will fall before the option expires, thus enabling them to sell it at a price higher than its current market value.

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There is no free lunch with stocks and bonds. Options are no different. Options trading involves certain risks that the investor must be aware of.

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Options are investment tools with built-in risk-measuring/risk-management tools. Option combinations often give the trader a good potential.

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Trading options involves buying or selling a stock at a set price for a limited period of time. But options are useful for long-term buy-and-hold investors, too.

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Another useful feature of stock option investing is the ability can add on insurance into any trading plan. In times of great market uncertainty, protective put.

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Buying and selling stock options is certainly not a beginner investing strategy, but is one that could slowly be added to an overall investment portfolio over time.