trading
options
Financial contracts that give the buyer the right, but not the obligation, to buy or sell an asset at a specific price before a specific date.
Example
"She bought call options on the stock, giving her the right to buy shares at $50 even if the price rose to $80."
💡 Memory Tip
OPTIONS give you an OPTION — the right to buy or sell, but you don't HAVE to.
Etymology
From Latin 'optio' meaning 'choice' — you have the option (choice) but not the obligation.
Common Misspellings
optinsoptonsoptioinsoptionss
Related Terms
See Also
derivativescall optionput option