Hi, Kevin,
My example of what you are trying to do. I am just pasting some example text so I don't have to type for this example :)
Step 1: In my example, type Option 1
Step 2: Press TAB
Step 3: From the Menu, select Format>Align & Indent>Indentation options.
Step 4: Under Special indent select Hanging and in the field to the right enter a value, something like 2 for the amount of indentation and click Apply.
Step 5: Then either paste text or start typing.
Step 6: At the end of the paragraph hit enter and type Option 2 and then hit TAB and start typing.
I hope this helps,
Ben Liebrand