Dictionary > English Dictionary > Definition, synonym and antonym of option
Meaning of option by Wiktionary Dictionary



    From French option, from Latin optiō ( “choice; option; act of choosing” ), from optō ( “I choose, select” ). Equivalent to opt +‎ -tion .


    • ( RP ) IPA: /ˈɒpʃən/, X-SAMPA: /"QpS@n/
    • ( GenAm ) IPA: /ˈɑpʃən/, X-SAMPA: /"ApS@n/


    option ( plural: options )

    1. One of the choices which can be made.
    2. The freedom or right to choose .
    3. ( 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 .
    4. ( graphical user interface ) A button on a screen used to select an action ( often "menu option" )



    Derived terms

    Related terms

    External links

    • option in Webster’s Revised Unabridged Dictionary, G. & C. Merriam, 1913
    • option in The Century Dictionary, The Century Co., New York, 1911


Explanation of option by Wordnet Dictionary


    1. the act of choosing or selecting

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

    3. what option did I have?
    4. the right to buy or sell property at an agreed price

    Definition of option by GCIDE Dictionary


    1. Option n. [L. optio; akin to optare to choose, wish, optimus best, and perh. to E. apt: cf. F. option.]
      1. The power of choosing; the right of choice or election; an alternative.

      There is an option left to the United States of America, whether they will be respectable and prosperous, or contemptible and miserable, as a nation. Washington.

      2. The exercise of the power of choice; choice.

      Transplantation must proceed from the option of the people, else it sounds like an exile. Bacon.

      3. A wishing; a wish. [Obs.] Bp. Hall.

      4. ( Ch. of Eng. ) A right formerly belonging to an archbishop to select any one dignity or benefice in the gift of a suffragan bishop consecrated or confirmed by him, for bestowal by himself when next vacant; -- annulled by Parliament in 1845.

      5. ( 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”.

      ☞ A person owning a stock may sell to another person an option or right to buy that stock at some specified price within a specified period of time, and in return will get a premium in consideration for giving the option. If the option price ( the strike price ) is above the market value for the entire period in which the option is valid, the option is typically not exercised, and expires with no need on the part of the stock owner to transfer the actual stock itself. If however the stock price rises above the option price, the holder of the option may exercise the option, and buy the stock at the specificed price, and may in turn resell the stock at the current market value, perhaps making a net profit on the transaction. The original holder of the stock will receive, in addition to the price at which the stock is sold, the price of the option, and will generally receive more money than if the stock itself were sold at the time that the option was sold. The actual profits for the transaction will depend
      on the fees that brokers charge for conducting the sales of options and stocks.

      Buyer's option, an option allowed to one who contracts to buy stocks at a certain future date and at a certain price, to demand the delivery of the stock ( giving one day's notice ) at any previous time at the market price. -- Seller's option, an option allowed to one who contracts to deliver stock art a certain price on a certain future date, to deliver it ( giving one day's notice ) at any previous time at the market price. Such options are privileges for which a consideration is paid. -- Local option. See under Local.

      Syn. -- Choice; preference; selection. -- Option, Choice. Choice is an act of choosing; option often means liberty to choose, and implies freedom from constraint in the act of choosing.