@catcarr: Tools>Options is a MS Windows, not an OS X expression.
To find the same commands under any OS X application (Skype included), click the following in the toolbar; Application name>Preferences.
You may find what you want under Skype>Preferences>Audio/Video. Good luck.
They're neatly hidden in Microsoft Windows, as harrissjt has pointed out in the post immediately above yours. Follow the instructions in that post and you'll be on the True Path to Enlightenment.