- The definition of an option is the choice or the power to make a choice, or a contract for the right to buy or sell something at a specific price within a specific time period.
- An example of an option is the choice between ice cream and pumpkin pie for dessert.
- An example of an option is the ability to buy ABC stock at a certain price, regardless of the prevailing market price.
Two delicious dessert options!
- the act of choosing; choice
- the power, right, or liberty of choosing
- something that is or can be chosen; choice
- an optional item that can be purchased to supplement or enhance another consumer item
- a contract by which one person, company, etc. gives another, for a consideration, the right to buy, sell, or lease something, sign or renew a contract, etc. at a specified price and within a specified time
- Football an offensive play in which the ball carrier decides whether to hand off, run with, lateral, or pass the football
Origin of optionFrench ; from Classical Latin optio ; from optare, to wish, desire, ultimately ; from Indo-European an unverified form op-, to choose, prefer
- Sports to transfer (a player) to a minor league with the option of recalling him
- to grant or acquire by means of an option (); specif., to buy or sell (rights) to (a book, film, etc.) in this way
- The act of choosing; choice: Her option was to quit school and start her own business.
- The power or freedom to choose: We have the option of driving or taking the train.
- a. The right, usually obtained for a fee, to buy or sell an asset within a specified time at a set price.b. A contract or financial instrument granting such a right: a stock option.c. The right to make a movie adaptation of a literary work or play: a movie studio that purchased an option on a book.d. Baseball The right of a major-league team to transfer a player to a minor-league team while being able to recall the player within a specified period.
- Something chosen or available as a choice. See Synonyms at choice.
- An item or feature that may be chosen to replace or enhance standard equipment, as in a car.
- Football An offensive play in which a back, usually the quarterback, decides during the play whether to run with the ball, throw a pass, or make a lateral, depending on the actions of the defense.
transitive verbop·tioned, op·tion·ing, op·tions
- To acquire or grant an option on: “had optioned for a film several short stories about two policemen” (Barbara Goldsmith).
- Baseball To transfer (a major-league player) to a minor-league club on option.
Origin of optionLatin optiō, optiōn-.
- One of the choices which can be made.
- The freedom or right to choose.
- (finance) A contract giving the holder the right to buy or sell an asset at a set strike price; can apply to financial market transactions, or to ordinary transactions for tangible assets such as a residence or automobile.
- (graphical user interface) A button on a screen used to select an action (often "menu option")
(third-person singular simple present options, present participle optioning, simple past and past participle optioned)
- To purchase an option on something.
- The new novel was optioned by the film studio, but they'll probably never decide to make a movie from it.
option - Investment & Finance Definition
A contract that gives the buyer the right to purchase (call) a security from the option writer or to sell (put) a security to the writer. A writer is the investor who creates the option, hoping to profit from the premium that the purchaser pays. An option specifies a price at which the option can be executed (called the strike, or exercise, price), and a time period during which the option is valid. Exchange-traded options have standardized terms, while those traded between individuals are customized. Options provide a type of insurance for investors who want to lock in a maximum price that they can buy a stock or other investment for or a minimum price at which the stock can be sold.
option - Legal Definition
- The power or right to make a choice.
- A contract to keep an offer open for a specified period of time so that the person making the offer cannot suddenly withdraw it during that period.
- The right carried by that contract.
- The right to sell or buy a certain number of stocks or bond at a set price within a specified time period.
- To give or take an option on something.