On a basic level what are options and options trading?
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You walk up to a gambling table and lay down $3 to bet that the stock of choice will go higher than $50 within the next 10 minutes. They take your $3 and spin the wheel of possibilities. If the stock price goes higher than $50 before 10 minutes expires then you get to keep the total difference between $50 and the max price it reached. If 10 minutes expires without going higher than $50 then you just lose the $3. That is how call options work.
A put option is the same, but you’re betting the stock price will go below, not above, $50.
Really it is just a sanctioned game of California High-Low.
Realistic option contracts will normally have an expiration of days to months, not 10 minutes.
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