Newbie Options Trading Questions

[SlowStroke]

1) The Situation

I spot an upward trend in stock XYZ. The stock price is $80. If the price falls to $78 I will admit I was wrong and exit the trade. If I am correct the upward trend may last more than a year and I will stay in for the duration.

2) The Problem

To purchase a block of 100 shares will cost $8000. The amount of risk I am willing to assume is 2% which at the current time means I can only afford to buy 15 shares.

3) Options Solution?

I don't know anything about trading in stock options. But I suspect it may provide a solution to this problem.

4) My Questions

Is there any way I can purchase stocks in blocks smaller that 100 shares?

Is there an options trade that will simulate the risk to reward ratio I want based on the price movements of stock XYZ?

What if the upward trend lasts for several years? How do I roll over or extend the options trade to take advantage of this?

5) Thanks

Thanks in advance to all who reply. I hope the questions aren't too basic. I'm here to learn.

[Rhett]

Options will not help you. Try not to lose too much of your $60k before you put what's left in a safe place.

[GoSox]

Yes, you can buy 1 share if you wish. The "catch" is the commissions start to really eat up your bankroll.

Yes options can give you leverage so you can invest less and make more. The downside is it can take a relatively small move in stock price to make the options worthless (you lose entire investment).

In order to be able to trade options, you need to be authorized by your broker. They will usually require some proof that you are an experienced investor to qualify you.