I have $500 today to do options trading should I buy one stock two stocks or three stocks

Options trading is a complex activity that requires careful consideration of risk and potential rewards. With a $500 investment, you have several options for entering the market, but it's crucial to remember that options trading can be risky, and the potential losses can exceed your initial investment.

1. Understanding the Risk: Before deciding how many stocks (or contracts) to buy, assess your risk tolerance and the potential for profit. Options trading involves leverage, which means that a small change in the underlying asset's price can result in a significant gain or loss. The exact amount of profit or loss depends on the difference between the stock price and the option strike price at expiration or when the option position is closed.
2. Initial Investment Considerations: If you're new to options trading, it might be wise to start with a smaller investment to gauge your performance and learn from your experiences. A $500 investment is a good starting point, but it's important to allocate your funds in a way that you're comfortable with the potential losses.
3. Diversification: Buying multiple options contracts can help diversify your portfolio and potentially reduce risk. However, it's not necessarily the case that three contracts are better than one or two. Diversification should be based on your trading strategy and the underlying assets you're investing in.
4. Strategic Considerations: The decision to buy one, two, or three contracts should be based on your trading strategy. For example, if you're confident in your prediction of the stock's movement, you might consider buying more contracts to amplify your potential gains. Conversely, if you're uncertain, you might start with fewer contracts.
5. Market Conditions: Always consider the current market conditions and volatility. High volatility can offer more opportunities for profit but also increases the risk of losses.

In conclusion, with a $500 investment, you could consider buying one to three options contracts, depending on your risk tolerance, trading strategy, and the market conditions. It's important to remember that options trading is not a get-rich-quick scheme and should be approached with a long-term view, considering both potential profits and risks.