The same as with any investment decision, you should know what you hope to achieve before engaging in options trading. For example, "Investor A" decides to trade options because he wants to increase the income he receives from his stocks, and "Investor B" decides to trade options because she wants to protect her stocks from a downturn in the stock market. These are two distinct objectives that require two distinct options strategies in order to be successful. For example, "Investor A" might consider covered call options, or selling someone the right to buy a stock he already owns at a specific price and time frame, while "Investor B" might consider purchasing puts, or options on an index that tracks the type of stocks in her portfolio. Prior to engaging in an option strategy, the maximum gain, maximum loss, and break-even points should be calculated. Erick believes that this will serve as a good test of your risk tolerance. Calculators for options profit allow you to see the returns and profit or loss associated with various stock option strategies in one place. Look for a broker that charges a low per-contract fee for options, as well as research and tools that can help you determine which trading strategies to use along the way.