Kindly note that:
"It is important to remember that options can be an extremely risky investment, and they are certainly not appropriate for beginning investors. Only the most experienced investors should include options in their investment strategy, and even the most knowledgeable investors should prepare for the possibility of substantial losses. Information about options trading can be acquired from the Chicago Board Options Exchange (1-800-OPTIONS)."
For further explanation go to this site and expand your understanding.
link-
http://www.investorguide.com/article/11652/a-guide-to-understanding-options-and-their-features-igu/
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