Jelly roll (options)

Okay kiddo, imagine you have a jelly sandwich. Now suppose you want to trade your jelly sandwich for something else, like an apple. But you don't know if anyone wants to trade an apple for your jelly sandwich. So, you go to a restaurant where lots of people are trading food, and you see a bunch of people who might be interested in what you have.

Now, imagine there's a person who really wants your jelly sandwich, but they don't want to trade their apple just yet. So, they ask you if you'll give them the option to trade sandwiches in the future. You say, sure! You tell them that in two days, they can decide if they want to trade their apple for your sandwich, but they have to pay you a little bit of money to have that option. They agree, and you both shake hands.

Congratulations, you've just executed a *jelly roll option*! Basically, you've given someone the right to trade with you in the future (in this case, a sandwich for an apple), but they have to pay for that right. You can also buy jelly roll options yourself if you think the price of the sandwich might go up or down in the future. It's a way to make trades without actually committing to them right away.

Does that make sense, kiddo?