Every option gives the ability to buy 100 shares at a specific price. So I usually buy options where the strike price is right under the share price. If it goes up, I can sell the option or exercise the option and buy 100 shares per contract at the strike price I bought...
If it goes down, I stand to lose the premium I paid for the option. So it can be risky and you need watch your trades much more, in case it goes against you.
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