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  1. OPTION Definition & Meaning - Merriam-Webster

    choice, option, alternative, preference, selection, election mean the act or opportunity of choosing or the thing chosen. choice suggests the opportunity or privilege of choosing freely. option implies a power …

  2. Options: Types, Spreads, and Risk Metrics - Investopedia

    Dec 30, 2025 · An option is a type of financial instrument that's tied to an underlying security. Options give their buyers the right, but not the obligation, to purchase or sell the asset at a specified...

  3. What are options, and how do they work? | Fidelity

    Sep 30, 2024 · An option is a legal contract that gives you the right to buy or sell an asset (think: a stock or ETF) at a specific price by a specific time. They are known in the financial world as "derivatives."

  4. OPTION Definition & Meaning | Dictionary.com

    OPTION definition: the power or right of choosing. See examples of option used in a sentence.

  5. Introduction to Options | Charles Schwab

    An option is a contract that represents the right to buy or sell a financial product at an agreed-upon price for a specific period of time. You can typically buy and sell an options contract at any time before …

  6. OPTION definition in American English | Collins English Dictionary

    An option is something that you can choose to do in preference to one or more alternatives. He's argued from the start that the US and its allies are putting too much emphasis on the military option. If you …

  7. What is an Option? - optionseducation.org

    What is an Option? An option is a contract to buy or sell a specific financial product known as the option's underlying instrument or underlying interest. For equity options, the underlying instrument is …

  8. What Is Options Trading? A Complete Guide to Options - Merrill Edge

    What is an option? An option is a contract that gives the buyer the right (but not the obligation) to buy or sell an underlying asset at an agreed-upon price on or before an agreed-upon date.

  9. Option Definition & Meaning | Britannica Dictionary

    OPTION meaning: 1 : the opportunity or ability to choose something or to choose between two or more things; 2 : something that can be chosen a choice or possibility

  10. What Is Options Trading? A Beginner's Overview - Investopedia

    Dec 30, 2025 · An option is a contract giving the buyer the right—but not the obligation—to buy (in the case of a call) or sell (in the case of a put) the underlying asset at a specific price on or before a...