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  1. Options: Types, Spreads, and Risk Metrics - Investopedia

    Dec 4, 2025 · Options are a type of financial instrument that grant their buyers the right, but not the obligation, to buy or sell an underlying asset at a specified strike price.

  2. 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 …

  3. 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."

  4. 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 …

  5. 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 …

  6. Understanding Options: Strategies, Types & Risks | BlackRock

    Options are derivatives, meaning they “derive” their price from that of another security. While many investors may consider them complex, options can help improve risk-adjusted outcomes when used …

  7. 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 …

  8. What Are Options and How Can Investors Use Them? - Kiplinger

    Dec 12, 2024 · Options are part of an asset class known as "derivatives," which means they perform based on the movement of an underlying asset. For purposes of our discussion, we'll focus on …

  9. What is an Option? - optionseducation.org

    An option is a contract to buy or sell a specific financial product known as the option's underlying instrument or underlying interest.

  10. What Is Options Trading? A Beginner's Overview - Investopedia

    Dec 10, 2025 · A call option gives the holder the right to buy a stock, and a put option gives the holder the right to sell a stock. Think of a call option as a down payment on a future purchase.