Options are similar to futures contracts in that they are also derivatives with a future expiry date.

Options are mainly used with shares in companies (both public and private).

You can see option details listed in financial magazines, usually after the share prices.

There are call options and put options.

It is critical to understand that with options, you have the right but not the obligation to enforce the contract. You would only do so if it is profitable.

This is the main difference between options and futures.

With futures you have the obligation to honour the contract.