Option /(?)/

Op·tion

Option

n.
  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.
  3. A wishing; a wish. [Obs.]
  4. 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. (Ch. of Eng.)
  5. 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. (Stock Exchange)

Phrases & Compounds
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.