Equity options were originally designed - and still likely are best - as hedging tools. It's really an insurance product in that it's risk-adjusted; it's time-bound; profitability is conditional; and there's a premium paid to hold the insurance.
An example is SPY250404C580 quoted at $16.07.
That's a call option on SPY that expires 2025 April 4th, the premium costs $16.07 per share for 100 shares (=$1607 to purchase the contract), and the condition is within that time frame you can "call" 100 shares from the counterparty for $580 per share. Conversely you can also get put options to "put" shares to the counterparty.
It can also be used as a leverage speculative tool: You paid $16.07 per share premium to own the 580C. You profit is the size of the market discount relative to the premium.
-SPY @ 596.08. You call shares at a $16.08 discount ($596.07-$580). But you paid $16.07 premium. Your net profit per share is $0.01 (or $1 per contract)
-SPY @ 597.00. You call shares at a $17 discount. Net profit is $0.97 per share (or $97 per contract).
-SPY @ 600.00. You call shares at a $20 discount. Net profit is $3.93 per share (or $393 per contract).
It's possible to sell the call option as an underwriter and pocket the $1607 premium up front. SPY closing below $596.07 is profitable for underwriter. Below $580 nets the full $1607 as profit.
That's the gist. Most retail are long options, i.e. they buy the contracts, and lose money on it consistently.
I like to get spicy and simultaneously short and long options at different strikes and expirations, so I can also lose money, but in more exotic and exciting ways.