Imagine you have the chance to buy a concert ticket at a set price in the future, but you're not sure if you'll want to go. An option is like a contract that gives you this right, but not the obligation, to buy something (the "underlying asset") at a specific price (the "strike price") by a certain date. You can choose to exercise the option (buy the ticket) or let it expire if the price goes up or your plans change.
