How do you use listed options for a particular stock to determine where a stock's price might go?

Answer 1

You check up the various strikes available for a particular options. Some will have low open intrerest. Lower strikes will have high open interest. So we can assume that the strikes for which there is high demand will be around which the stocks will trade.

Answer 2

In the US, option prices can be used to determine a stock's expected volatility but not necessarily which direction it is going to move. If you look at puts and calls with a strike price that is equidistant from the underlying equity with the same expiration date, they should reflect virtually identical premiums. If they don't it would be a sign that Wall Street feels the stock is more likely to move one way versus the other. If the put is more expensive, Wall Street is bearish, whereas if the call is more expensive they are bullish. Significant disparity rarely exists, however, because it creates arbitrage opportunities which, when taken advantage of, soon erase any pricing efficiency.