To make money option trading it is absolutely vital you understand a few essentials. Firstly, option trading while offering wonderful financial rewards due to the leverage that comes with them, can also be the easiest way to wipe out an entire trading bank. Nevertheless, options in my opinion has huge advantages over other leveraged instruments such as CFDs and futures because unlike the latter, options have limited risk. The maximum you can lose is the amount you invest - less you sell naked options which is never recommended.
This leverage, combined with the limited risk in options, is what makes them so appealing as a trading vehicle. But along with these advantages comes one big setback. All options expire. They are not like shares which you can hold onto until the price recovers. If they are "out-of-the-money" at expiry date, they are worthless. So the length of time until option expiry may be an important piece of your trading strategy.