Options trading is an interesting and somewhat complex way to make money. That is because, unlike just trading stocks, trading options means you enter into a contract to purchase a certain amount of stocks at a certain price. Once you have entered into the contract you have three options, you can purchase the stocks for yourself, sell the stocks, or allow the contract to expires. If the stocks you are interested in do not do well, then you will lose less money if you choose to let the contract expire (entering into the contract costs money). Once you learn to trade options, you will better understand when the best time to buy, sell, and expire are.