I want to buy stock options. Can anyone guide me through my first transaction?

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You need to be more specific as to what you want to do. Right now I'll assume that you want to buy the option to buy a stock. Buy a Call for what ever length of time you want and the strike price (stock price) you want. Options are tricky and 85% of the time they expire worthless, so it might be worth practicing a little before you put up your own money.

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Please read this book...Getting Started in Options by Michael C ThomsettYou can get it on ebay for about $5. Excellent explanation of option theory. Then you'll be able to ask the right questions.http://search.ebay.com/search/search...p=32&fsoo=2---

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Stock options investment are puts and calls and combinations of these that are called straddles and spreads. Trading in options is for sophisticated investors, so before you attempt it, be sure you study the subject. Lots of books are available. Buying puts and calls can greatly increase your financial leverage but it also increases your risk. It is easy to lose 100 percent of your investment in a put or call, because many of them expire worthless. The price of the underlying stock has to move enough to generate a profit in the options you buy. If you buy puts and calls, you have to watch the market carefully, because if your option is in the money at expiration time, you will have to either buy the stock if you are holding a call, or sell it if you are holding a put. Therefore, option speculators usually dispose of their options before they expire. Buying puts and calls is a speculative business. A safer part of the option market is the selling of puts and calls. Many investors use these options to increase the return on their investment portfolio. Again, you have to know what you are doing. Inform yourself before you jump in.

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