Option trading is like making a bet with someone about the future price of a thing, like a stock or a commodity. You can either bet that the price will go up or down, and you agree on a price now for buying or selling the thing in the future.

If you think the price of the thing will go up, you buy a "call" option, which gives you the right to buy the thing at a lower price than what you think it will be worth in the future. If you think the price will go down, you buy a "put" option, which gives you the right to sell the thing at a higher price than what you think it will be worth in the future.

Option trading can be used for different reasons, like protecting yourself from risk or making money from market changes, but it's important to understand that it can also be risky and requires knowledge and experience to do it well.