We've spent a lot of time on option definitions, option chains, trade examples, etc.  Now, let's explore what's involved in actually placing an online option order.

First, let's look at the information you're going to need to know to place the order. We'll use a basic option purchase on AAPL for our first example.

1. Strike price (orange arrow)

2. Month

3. The option symbol (green arrow). Typically consists of five letters. The first three are the option root for the stock (or index) you're trading. The fourth letter represents the month and the fifth letter represents the strike price.

4. Type of order -- limit or market.

5. This is a new order so you are "buying to open" a new position.

6. The number of contracts you want to trade.

7. How much you are willing to pay (blue arrow).

8. Time frame - day order or GTC (good till cancel).

Now that you have all the information at your fingertips, let's take a look at an empty option order page (source: BrokersXpress.com). Online option order pages will differ from broker to broker. However, the basics are the same. If you have a little common sense, you should not have a problem. If you have a problem, maybe option trading isn't for you.

Now, all you have to do is fill in the blanks. Below is the same "Options Order Form" with the blanks filled in. It ain't brain surgery.

See, wasn't that easy? The top red arrow is pointing to another choice you have. You can specify that you want your complete order to be filled completely or none at all. If you want to trade 10 contracts, there is the possibility that your order will be partially filled. How can that happen? Well, there may only be four contracts available at the price you requested. It's not common, but it may happen from time to time.

What happens if you're only filled on four contracts? Your order is still open for the remaining six contracts for the remainder of the trading day. The market typically fluctuates and the chance is pretty good that your price will become available again at some point during the day. You'll be first in line to be filled.

The bottom red arrow is your next step. You will need to preview your order. Below is the "preview" screen that you will see next.

The "preview" screen gives you the opportunity to preview your order before you submit it. Here's your chance to double-check everything. The blue arrows show all the information you put onto the order page. Is it correct? Is that what you wanted to do? You better proof read it because, in the heat of the moment, it's easy to make a mistake. If you send in the wrong information and get filled, you will have to live with the results - and that can get real expensive.

Also on the "preview" screen you can see the estimated commissions for your order and the total cost for the purchase. Is that what you were expecting? If not, you better take a long hard look at how you filled out those boxes.

If everything is kosher, then go ahead and click on the "place order" button. Your order will be instantly sent to the market. Your bet is out there. Hopefully, your order will be filled. Then, it's "let the games begin." The only control you have once your order is filled is the decision of when to get out.

Mike Parnos is an options instructor and mentor.  Online Trading Academy trading knowledge...your most valuable form of capital.