Options are a type of financial derivative that gives the buyer the right to buy or sell an asset at an agreed price in the future within a specific time frame. The article details the two basic types of options, namely call options and put options, as well as key elements such as underlying assets, exercise prices, expiration dates, and premiums. It also discusses the main functions and applications of options in investment strategies, risk management, and enhancing returns, analyzing their flexibility, leverage effects, and risk control advantages, as well as risks such as premium losses, market risks, and time decay.