An option is a contract about underlying shares of stock. A seller writes the option, which comes with an expiration date. The option is sold for a price, which is called the premium. Each option contract represents 100 shares of stock, and the premium is quoted on a per-share basis. The option in the contract is that you will have the right to buy or sell shares. The shares of stock that the contract is about are called the underlying. A significant part of an option contract is setting a pre-arranged price for the stock, the strike price.
The beauty of options trading is that a trader can get started for a few hundred dollars. If you are disciplined, you can avoid trading on a large scale until you have some experience, you can build up profits slowly over time. And when you have losses, they are going to be limited to a couple of hundred dollars or less.
Keep in mind that options trading requires lots of specialized knowledge. So while you could, in theory, do it in conjunction with other types of trading, it's not recommended. Instead, if options trading appeals to you, you should devote all of your attention to it. Become a master of the trading that appeals to you more and ride it to maximize profits.
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