Two contract types do all the work. A call gives the buyer the right to buy 100 shares at the strike. A put gives the buyer the right to sell 100 shares at the strike. Every options strategy on Earth, from a covered call to a twisted sister, is built from those two atoms in some combination of bought and sold legs.
The premium is what you actually pay or collect. It has two components: intrinsic value (how far in-the-money the option already is) and extrinsic value (time value plus implied volatility). Extrinsic value decays every day the underlying does not move favorably. That decay — theta — is the silent tax beginners pay when they buy out-of-the-money options and watch them evaporate even though the stock did not move against them.