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www.investopedia.com

Options: Types, Spreads, and Risk Metrics - Investopedia

Dec 30, 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...

www.merriam-webster.com

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 to choo...

en.wikipedia.org

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 ...

www.fidelity.com

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."

www.schwab.com

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 expiration.

www.optionseducation.org

What is an Option? - optionseducation.org

What is an Option? An option is a contract to buy or sell a specific financial product known as the option's underlying instrument or underlying interest. For equity options, the underlying instrument is a stock, ETF ...