What does option mean?

Definitions for option
ˈɒp ʃənop·tion

Here are all the possible meanings and translations of the word option.

Princeton's WordNet

  1. option(noun)

    the right to buy or sell property at an agreed price; the right is purchased and if it is not exercised by a stated date the money is forfeited

  2. option, alternative, choice(noun)

    one of a number of things from which only one can be chosen

    "what option did I have?"; "there no other alternative"; "my only choice is to refuse"

  3. choice, selection, option, pick(noun)

    the act of choosing or selecting

    "your choice of colors was unfortunate"; "you can take your pick"

GCIDE

  1. Option(n.)

    (Stock Exchange) A stipulated privilege, given to a party in a time contract, of demanding its fulfillment on any day within a specified limit; also, the contract giving that privelege; as, an option to buy a stock at a given price; to exercise an option.

    Etymology: [L. optio; akin to optare to choose, wish, optimus best, and perh. to E. apt: cf. F. option.]

Wiktionary

  1. option(Noun)

    One of the choices which can be made.

    Etymology: From option, from optio, from opto. Equivalent to .

  2. option(Noun)

    The freedom or right to choose.

    Etymology: From option, from optio, from opto. Equivalent to .

  3. option(Noun)

    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.

    Etymology: From option, from optio, from opto. Equivalent to .

  4. option(Noun)

    A button on a screen used to select an action (often "menu option")

    Etymology: From option, from optio, from opto. Equivalent to .

  5. option(Verb)

    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.

    Etymology: From option, from optio, from opto. Equivalent to .

Freebase

  1. Option

    In finance, an option is a contract which gives the owner the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price on or before a specified date. The seller incurs a corresponding obligation to fulfill the transaction, that is to sell or buy, if the long holder elects to "exercise" the option prior to expiration. The buyer pays a premium to the seller for this right. An option which conveys the right to buy something at a specific price is called a call; an option which conveys the right to sell something at a specific price is called a put. Both are commonly traded, though in basic finance for clarity the call option is more frequently discussed, as it moves in the same direction as the underlying asset, rather than opposite, as does the put. Options valuation is a topic of ongoing research in academic and practical finance. For simplicity of discussion, the value of an option is commonly decomposed into two parts: The first of these is the "intrinsic value," which is defined as the difference between the market value of the underlying and the strike price of the given option. The second part depends on a set of other factors which, through a multi-variable, non-linear interrelationship, reflect the discounted expected value of that difference at expiration. Although options valuation has been studied at least since the nineteenth century, the contemporary approach is based on the Black–Scholes model which was first published in 1973.

Chambers 20th Century Dictionary

  1. Option

    op′shun, n. act of choosing: power of choosing or wishing: wish.—adj. Op′tional, left to one's option or choice.—adv. Op′tionally.—n. Op′tions, a mode of speculating, chiefly in stocks and shares, which is intended to limit the speculator's risk. It consists in paying a sum down for the right to put (make delivery) or call (call for delivery) a given amount of stock at a fixed future date, the price also being fixed at the time the contract is entered into.—Local option (see Local). [L. optio, optionisoptāre, to choose.]

Editors Contribution

  1. option

    Freedom or right to choose.

    The most joyful option was to marry as they love each other with all their heart and soul.

    Submitted by MaryC on January 24, 2020  

British National Corpus

  1. Spoken Corpus Frequency

    Rank popularity for the word 'option' in Spoken Corpus Frequency: #1944

  2. Written Corpus Frequency

    Rank popularity for the word 'option' in Written Corpus Frequency: #2058

  3. Nouns Frequency

    Rank popularity for the word 'option' in Nouns Frequency: #499

How to pronounce option?

  1. Alex
    Alex
    US English
    Daniel
    Daniel
    British
    Karen
    Karen
    Australian
    Veena
    Veena
    Indian

How to say option in sign language?

  1. option

Numerology

  1. Chaldean Numerology

    The numerical value of option in Chaldean Numerology is: 5

  2. Pythagorean Numerology

    The numerical value of option in Pythagorean Numerology is: 8

Examples of option in a Sentence

  1. Julian Klymochko:

    In order for units to trade in-line with the underlying bullion, the unitholders require a physical redemption option at net asset value.

  2. House Speaker Paul Ryan:

    We've got to make sure we're protecting ourselves, so that's what we're looking at. What is the best option -- not just so we have an issue to talk about but so we have a result, which is to make sure we are not complicit or even facilitating of having someone come in who would seek to do us harm from Syria.

  3. Tom Smith:

    This tool fits perfectly into that gap giving the officers another option to use before having to use that high level of force to end that conversation very early, very safely.

  4. Andreas Schleicher:

    They had a drilling system when that was the only option -- they had to expand education quickly, but as they had achieved this, they were the first to think about, what is it that our children need to be successful...( in) tomorrow's economy ?

  5. Lindsey Graham:

    The only way North Korea will give up their nuclear program is if they believe military option is real.

Images & Illustrations of option

  1. optionoptionoptionoptionoption

Popularity rank by frequency of use

option#1#1313#10000

Translations for option

From our Multilingual Translation Dictionary

Get even more translations for option »

Translation

Find a translation for the option definition in other languages:

Select another language:

  • - Select -
  • 简体中文 (Chinese - Simplified)
  • 繁體中文 (Chinese - Traditional)
  • Español (Spanish)
  • Esperanto (Esperanto)
  • 日本語 (Japanese)
  • Português (Portuguese)
  • Deutsch (German)
  • العربية (Arabic)
  • Français (French)
  • Русский (Russian)
  • ಕನ್ನಡ (Kannada)
  • 한국어 (Korean)
  • עברית (Hebrew)
  • Gaeilge (Irish)
  • Українська (Ukrainian)
  • اردو (Urdu)
  • Magyar (Hungarian)
  • मानक हिन्दी (Hindi)
  • Indonesia (Indonesian)
  • Italiano (Italian)
  • தமிழ் (Tamil)
  • Türkçe (Turkish)
  • తెలుగు (Telugu)
  • ภาษาไทย (Thai)
  • Tiếng Việt (Vietnamese)
  • Čeština (Czech)
  • Polski (Polish)
  • Bahasa Indonesia (Indonesian)
  • Românește (Romanian)
  • Nederlands (Dutch)
  • Ελληνικά (Greek)
  • Latinum (Latin)
  • Svenska (Swedish)
  • Dansk (Danish)
  • Suomi (Finnish)
  • فارسی (Persian)
  • ייִדיש (Yiddish)
  • հայերեն (Armenian)
  • Norsk (Norwegian)
  • English (English)

Discuss these option definitions with the community:

Word of the Day

Would you like us to send you a FREE new word definition delivered to your inbox daily?

Please enter your email address:


Citation

Use the citation below to add this definition to your bibliography:

Style:MLAChicagoAPA

"option." Definitions.net. STANDS4 LLC, 2020. Web. 7 Aug. 2020. <https://www.definitions.net/definition/option>.

Are we missing a good definition for option? Don't keep it to yourself...

Free, no signup required:

Add to Chrome

Get instant definitions for any word that hits you anywhere on the web!

Free, no signup required:

Add to Firefox

Get instant definitions for any word that hits you anywhere on the web!

Nearby & related entries:

Alternative searches for option:


Thanks for your vote! We truly appreciate your support.