Option trading might sound complicated, but it’s simpler than you think. It’s a way to make money (or protect your investments) by betting on whether a stock’s price will go up or down—without actually owning the stock. Pretty cool, right?

In this blog, I’ll break it down for you in plain English, share an easy example, and even show you some numbers in a table. By the end, you’ll have a solid idea of what option trading is and how it works. Let’s dive in!