option enq, page-5

Hi All, pls be patient with me as a novice invester I'm on a steep learning curve. Can someone put in simple terms what options are and what is the benifit? I have tried to make sense of the ASX explanation, went straight through to the keeper. If I buy options at .13c what does that mean for me on the 31/01/2010?
I hold VPE shares already after doing nicely on QGC (bought in 2000 @.21c). Does it mean I can buy more VPE @ 25c?
Regards,
John