A stock represents a share in the ownership of a company and constitutes a claim on part of the company’s assets and earnings. When you purchase a stock, you are purchasing a piece of the company, making you a shareholder.

An option, on the other hand, is a derivative, meaning its value is derived from something else (in this case, from the value of assets such as a stock). Options give you the right but not the obligation to buy or sell a stock at a specific price by a specific date.

When you buy stocks, the aim is to buy low and sell high in order to make a profit. However, when dealing with options, you speculate on the future price movement of the stock, betting that the price will go up (call option) or down (put option).

– Reference: [Investopedia: Stock vs Options](https://www.investopedia.com/ask/answers/difference-between-stock-and-option/)