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Many investors first experience with stock options is buying a call or put as a cheap way to play an[http://www.swissrolexreplica.us/Hublot-Watches/Big-Bang-King-Power/ swiss Big Bang King Power Replica Watches] expected move on a stock. Unfortunately, those investors don't understand how option prices are determined and therefore a majority of options end up expiring worthless.
When you buy a call option expecting the stock price to rise or a put option expecting the stock price to drop, you have to understand how options are priced. When buying an option need to understanding terms like option delta, implied volatility, theta decay and proximity of the option strike price to the underlying stock.
You can evaluate these factors by having an understanding of the Greeks which are the factors that help determine an options price.
The delta will tell you how much an option will move for each 1 move in the underlying stock. So if you own a call option with a delta of .40 and underlying stock price moves up 1 then your option's price will increase .40 a contract. So the more in the money the option is, [http://www.swissrolexreplica.us/Patek-Philippe-Watches/Aquanaut/ swiss Aquanaut Replica Watches]the higher the delta. Many people make the mistake of buying an out of the money call option because they expect the stock to move up but if the delta is too low then the option won't appreciate as quickly as the move in the stock.