Hi all, new here and while I get stocks, i dont get Options...

Hi all, new here and while I get stocks, i dont get Options
Currently holding NTL and very, very, very happy.
I just dont understand options, can someone explain them?
From what i gather, you buy an option and only become profitable when it goes over $0.02 + option price. Fair enough. Do you need to trade these for real shares? If so how?
Treat me like an idiot in your replies, as i feel like one when it comes to options!
Thanks !