Options provide versatility in any market, and a way to help you meet your investment goals. But you need a strategy or a number of strategies to take advantage of the investment opportunities that a particular market offers.
In a rising market you may use options to lock in the price you'll pay for a stock, protect yourself from missing a market rally, and use leverage without significantly increasing risk. In a falling market, you may be able to insure your portfolio against market losses or moderate losses that do occur. And in a neutral market, where prices change relatively slowly, you may be able to add a source of income.
But you can't accomplish all these goals at the same time or with the same purchase or sale. In each case, you must determine what you want to accomplish, which type of option a call or a put is best suited to your ends, and whether the situation requires purchasing or writing the option or a combination of options.