
For all the jargon and complexities associated with options, at the end of the day, what these derivative instruments provide is flexibility. Simply stated, they provide traders tools that regular equity ownership can’t provide.
In most cases, the strategy for market participation is purely binary: either you’re long the security in question or you’re not long (as in, you’re not participating in the opportunity at all). Of course, you can choose to short a position but that comes with incredible financial risks. As such, most retail folks wisely avoid this route.