Explain options trading in simple terms if I'm familiar with buying and selling stocks.

When you buy or sell stocks, you're essentially making a bet on the future price movement of that stock. Options trading works similarly but adds another layer of flexibility.

In options trading, you're not buying or selling the actual stock itself, but rather contracts that give you the right (but not the obligation) to buy or sell the stock at a predetermined price (called the "strike price") within a specified time frame (until the expiration date).

Here's a simplified breakdown:

1. Call Options: 

   - Buying a call option gives you the right to buy the stock at the strike price before the expiration date.

   - Selling a call option means you're giving someone else the right to buy the stock from you at the strike price if they choose to exercise their option.

2. Put Options:

   - Buying a put option gives you the right to sell the stock at the strike price before the expiration date.

   - Selling a put option means you're giving someone else the right to sell the stock to you at the strike price if they choose to exercise their option.

Let's say you expect the price of a stock to go up. Instead of buying the stock outright, you could buy a call option. If the stock price does rise, the value of your call option will likely increase, allowing you to sell it for a profit.

Conversely, if you expect the price of a stock to go down, you could buy a put option. If the stock price drops, the value of your put option will likely increase, again allowing you to sell it for a profit.

But remember, options trading can be riskier than buying or selling stocks because options have expiration dates. If the stock doesn't move in the direction you anticipated before the option expires, you could lose the entire amount you paid for the option.

It's important to do your research, understand the risks, and perhaps start with small investments or paper trading (simulated trading) to get a feel for how options work before diving in with larger sums of money.