Options trading gives investors who are willing to take the risk the possibility of reaping large rewards as long as they use the right strategies.  Unfortunately too many traders are only familiar with trading strategies which are ineffective within the extreme volatility of the options market.  There are some approaches that can help to make you more successful in the options trading market. 

The first thing to remember when trading options is that time works against you.  You will need to be right about both the timing and the direction that the stock will take.  Options are not a long term trading strategy.  When it comes to options the longer out you go the higher premium you are likely to pay.  

When buying options the underlying stock will need to rise in value significantly for you to make a profit.  You will need to pay fees and commission to purchase a stock option call.  If the stock fails to rise to that level within the time you have predicted your option will expire and you are out any money you have spent.  

Companies which are stable and conservative offer low premiums on their options but are also unlikely to see much advance in their price.  Buying calls in a dull market is a sure way to lose your shirt.  You will have the best leverage with volatile growth stocks or commodity stocks. 

Before buying a call or put options it is a good idea to check the volume and open interest in the stock.  High bid ask spreads can really damage illiquid options with a low volume.  These options move up and down quickly and you can end up in trouble in the end.  

The best strategy for trading options is to only use money that you can afford to lose.  This can be hard to remember when you are on a roll but is probably the best advice you will get.