Explore options trading with Schwab. Trade with our intuitive online platforms and tools, plus receive real-time decision support from options specialists. Options can be a flexible investment tool, but they carry different risks than stocks. Here’s what beginners should know about how to trade options. Learn the basics of options trading, what calls and puts are, how options work, and strategies to hedge or speculate with practical examples for beginners. Explore the fundamentals of options, including types, spreads, and risk mitigation strategies. Learn the essentials of using options to leverage trades and hedge risks. Discover what options trading is, how to trade options and review four core strategies available to individual investors. Learn what options are, how calls and puts work, how premiums are priced, and which trading strategies are most effective in 2025. Perfect for beginners. Interested in learning about trading options but not sure where to start? Here's what you need to know about options trading. Options offer ways for traders to develop more sophisticated trading strategies. The first part of incorporating them into your decision-making involves understanding what options are and what they can do. How to understand options Ever go to book a plane ticket, but you’re not 100% sure you’re going to be able to take that trip? Prices look good, and you don’t want to risk them going up. In finance, an option is a contract which conveys to its owner, the holder, the right, but not the obligation, to buy or sell a specific quantity of an underlying asset or instrument at a specified strike price on or before a specified date, depending on the style of the option. Options are typically acquired by purchase, as a form of compensation, or as part of a complex financial transaction. Options are contracts that give you the right to buy or sell an asset at a specific price by a specific time. Here’s what you need to know to get started with options trading.