Options are like contracts that give you the right, but not the obligation, to buy or sell an underlying asset at a specific price (strike price) on or before a certain date (expiration date).   

There are two main types of options:

Call options: Give you the right to buy an asset.
Put options: Give you the right to sell an asset.
Why use options?

Hedging: Protect existing investments from downside risk.
Income generation: Sell options to generate income.
Speculation: Profit from price movements without owning the underlying asset.
Remember: Options trading can be complex and involves risk. Always do your research or consult with a financial advisor before making any investment decisions.