Options are best defined as a financial instrument that represents the volatility of of a given underlying. The way options are priced and how option prices changes is a function of volatility. Volatility is created by movement in the price of the underlying. More price movement equals more volatility. More volatility equals higher option prices and the converse of that is also true. This fact is important because volatility is the risk that the stock represents .Volatility is measured by Vega which is defined by the theoretical value of an option when volatility changes 1.00%. In other words you get what you pay for when you buy or sell an option. Cheap options have a less likelihood of expiring in the money while expensive options have the highest likelihood. Some sell cheap options with little chance of the option expiring in the money, but if it does the losses can be enormous. A buyer of cheap options is playing a long shot but if the option expires in the money, they will be big winners.