A long call option gives you the right — not the obligation — to buy 100 shares at the strike price before expiration. A long put gives you the right to sell. Both are purchased by paying a premium.
Break-even at expiration. For a call, you profit when the stock trades above strike + premium (your break-even). For a put, when it trades below strike − premium. Any price in between means you lose part or all of the premium.
Intrinsic value vs time value. The premium has two components. Intrinsic value is the immediate exercise value (call: max(stock − strike, 0); put: max(strike − stock, 0)). Time value is everything else — it reflects the probability that the option moves further in-the-money before expiration. Time value decays to zero at expiration (theta decay).
Maximum loss is the premium. For long options, you can never lose more than what you paid. This defined-risk profile is why long options are often preferred to short options or outright stock positions for speculative trades.
In-the-money vs out-of-the-money. A call is in-the-money (ITM) when the stock is above the strike. Out-of-the-money (OTM) calls cost less (lower premium) but require a larger move to profit. OTM options have higher leverage but lower probability of profit.