Option

'ɒpʃən

nounBeginner🔥Very CommonGeneral
3 meanings2 idioms/phrases4 questions

Definitions

3 meanings
1

A thing that is or may be chosen or done; a choice.

'ɒpʃən

nounneutralBeginner
General

A thing that may be chosen.

You have the option of staying or going.

💡 Simply: Imagine you're at an ice cream shop. An 'option' is one of the flavors you can choose. You have the option of chocolate, vanilla, or strawberry.

👶 For kids: A choice that you can pick!

More Examples

2

The menu offers several options for vegetarians.

3

We considered all our options before making a decision.

How It's Used

General

"We have several options for dinner tonight."

Business

"The company is exploring its strategic options."

2

To acquire or have the right to acquire something in the future, especially by an agreement; to choose.

'ɒpʃən

verbneutralmedium
Legal

To choose or decide to do something.

They optioned the rights to the movie.

💡 Simply: Imagine you see a cool house you might want to buy someday. You can 'option' it, which means you get the right to buy it later. Like reserving it!

👶 For kids: To choose or decide something!

More Examples

2

The company optioned the land for future expansion.

3

You can option this part of the contract.

How It's Used

Finance

"He optioned the property for future development."

Business

"The company optioned rights to the book."

Tip:The verb 'option' means to make a choice or have the right to choose.
3

A contract that gives the buyer the right, but not the obligation, to buy or sell an asset at a specific price on or before a specific date.

'ɒpʃən

nounneutralAdvanced
Legal

A financial instrument that gives someone the right to buy or sell a security at a specified price before a specific date.

The investor purchased put options to hedge against market risk.

💡 Simply: Imagine you have a special coupon (an 'option') that lets you buy a toy car for $10 later, even if the price goes up. You're not forced to buy it, but you have the option if you want to!

👶 For kids: A special contract!

More Examples

2

Options trading involves significant risk and can lead to substantial losses.

3

The company's stock options plan incentivizes employee performance.

How It's Used

Finance

"He bought a call option on the stock."

Investment

"Options trading can be risky but also very lucrative."

Tip:Financial option: a contract with the *option* to buy or sell an asset.

Idioms & expressions

have options

To possess or be able to choose from a number of different choices.

"After graduating, she had options for various job roles."

to keep one's options open

To delay making a decision in order to have a wider choice later.

"I'm keeping my options open until I get all the job offers."

From Latin optiō (choice, wish), from the verb optāre (to choose, wish).

The word 'option' began being used in the 17th century, evolving from its Latin roots relating to choice and preference, initially appearing in legal and commercial contexts.

Memory tip

Think of an 'option' as a choice you can make: You have options!

Word Origin

LanguageLatin
Original meaning

"choice, wish"

have an optionexplore optionsconsider optionsmultiple optionsoption to

Common misspellings

optonoptin

Usage

60%Spoken
40%Written