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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 …

  2. Option (finance) - Wikipedia

    In finance, an option is a contract which conveys to its owner, the holder, the right, but not the obligation, to buy or sell a specific quantity of an underlying asset or instrument at a specified …

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

    Dec 4, 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 …

  4. 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 …

  5. OPTION Definition & Meaning | Dictionary.com

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

  6. Options - The Balance

    A call option, or the right to buy an asset at a set price, is in the money if the current price of the asset is higher than that agreed-on price. A put option, or the right to sell an asset at a set …

  7. 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 …

  8. Options | Definition, Types, Strategies, Factors, Pricing, & Risks

    Sep 15, 2025 · Options are financial contracts that provide the right, but not the obligation, to buy or sell an underlying asset at a predetermined price and time. Options trading allows investors …

  9. Understanding Options: Strategies, Types & Risks | BlackRock

    Options are derivatives, meaning they “derive” their price from that of another security. While many investors may consider them complex, options can help improve risk-adjusted outcomes …

  10. What is an Option? - optionseducation.org

    An option is a contract to buy or sell a specific financial product known as the option's underlying instrument or underlying interest.