
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 specified...
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 strike price on or …
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 …
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."
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 …
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 to profit from …
OPTION Definition & Meaning | Dictionary.com
OPTION definition: the power or right of choosing. See examples of option used in a sentence.
OPTION | definition in the Cambridge English Dictionary
OPTION meaning: 1. one thing that can be chosen from a set of possibilities, or the freedom to make a choice: 2…. Learn more.
What Is Options Trading? A Beginner's Guide | SoFi
Nov 19, 2025 · Buying an option is simply purchasing a contract that represents the right, but not the obligation, to buy or sell a security at a fixed price by a specified date.
Options Trading Basics: A Beginner's Guide - Option Alpha
May 17, 2024 · Buying an option gives you the right to buy or sell stock. Selling an option obligates you to buy or sell stock. You can sell an option contract you don’t already own. This is similar to short …