Trading options is a bit more complicated than trading stocks. This page will guide you through the process at http://simulator.investopedia.com.
- Click on "Trade Options" when on the portfolio page.
- Enter the stock symbol for the company you wish to buy the options on. For example if you want to buy options on Microsoft, enter "MSFT" and highlight the option button as in the image below.
- Now you should have an option chain similar to the one below. Select the expiry month that you wish to trade the option in, and then click on the highlighted symbol that corresponds with the strike price you wish to trade at. Call options are always listed on the left hand side of the page, and puts
For example, in the option chain below, if you wanted to buy a June 03 call option on MSFT with a strike price of 22.50, then you would click on on the right. MQF FX. Notice that the last trade of this particular option is quoted at 2.45 per share. This means that the total price of 1 option contract, which represents 100 shares, is $245 (2.45*1*100).
- The ticker symbol, expiry, strike, and type of option are already entered in for you. Just enter the number of contracts you wish to buy and click review order.
- Take a look at the review page, if everything looks good, then click on the "Submit Trade" button.
- As long as there isn't any problem with the trade, your order will be executed and the option will be placed in your portfolio.
