To help illustrate the differences between buying stocks and options, you can envision the literal stock market as a big department store, like a Wal-Mart (WMT), where as long as the inventory is on the shelves, you can essentially choose what stocks you want.

But the options market works a bit differently—consider it as a more of an upscale jewelry store, complete with snooty sales people and secured glass cases. While you can see the option and know it's there, if the person behind the counter isn't around to open the case and sell you the option (or simply doesn't want to sell to you), you'll walk away empty-handed.

Now, I know it sounds silly to say that an options seller wouldn't want to unload his or her inventory, but remember that options sellers, in general, are much hedgier than stock sellers. Options market makers know the potential for skyrocketing values is much greater in the options realm.

So, if you come in and offer an options seller $1 for a position, but the seller knows that it has the potential to easily soar to $5, the person behind the glass counter may likely ignore your offer and wait for someone who will offer $2 or even $3.

But, while this illustration may seem like a rub when it comes to options, it's actually a huge benefit because, in effect, you can decide how much you're going to pay by "haggling" with the options seller behind the counter. In this volatile market, establishing a strong entry price can mean the difference of hundreds of dollars of profits. (See also: "Explosive Profits From Volatile Stocks.")

But how exactly do you ensure you're getting the best price?

Yours for the "Asking"

When looking at an option's price, you're going to see the "last" price, the "bid" price and the "ask" price listed.

The last price is the most recent price attached to a transaction with that option. Now, notice I didn't say the last price is the option was bought for or sold for, because the last price could be either.

However, the "bid" price is the market price you would get if you sold the option at that moment…