Though the process is more complicated with options, you can use the same type of research you use when you invest in equities.
One way to analyze options is by using an appropriate investment benchmark. A benchmark is a standard against which you can compare the performance of a security or group of securities.
A useful statistic is the option's theoretical price. Looking at its theoretical price, or the price at which the option should be trading, can help you determine whether an option you're considering is trading for more or less than it's worth.
There are a wide variety of places to find current and comprehensive information about options. The best places to look include the Internet, newspapers and financial newsletters.
There are several different variables of risk involved in options trading, and active investors often use standard measures of risk, each of which is represented by a letter of the Greek alphabet.