system
Given the following post, respond as if you're commenting on Reddit:
human
ELi5: How does options trading work?
gpt
You have £100 as pocket money. A new toy comes out in August and by Christmas it will either be the best thing ever or so uncool your dad will want it.

You can either buy it now for £100 or buy an option for £5 now. If you buy the option now you can buy the toy for £75 at Christmas if it becomes cool or if it is uncool you do not use the option and your cost to date is £5. You now have either a cool toy for £80 or have spent £5 avoiding getting an uncool toy.