Option

An option denotes a choice or alternative from a set of possibilities. It describes a decision point where several courses of action are available, each with different costs, benefits, and risks. The term is used across contexts, from everyday decision making to specialized domains such as finance, law, and computing.

In finance, an option is a derivative contract that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price (the strike) within a defined period. A call option allows purchase; a put option allows sale. Key terms include the premium, which is the price paid for the option, the expiration date, and whether the option is American or European in terms of exercise flexibility. Options are used for hedging, speculation, or income strategies, and their value derives from the underlying asset's price, volatility, time remaining, and interest rates.

In computing and software, an option (or flag) is a modifier that can alter the behavior of a program or command. Options may be short-form, like -v, or long-form, like --verbose, and are typically parsed by a command-line interface or configuration parser. They may take values (for example --threads=4) or be boolean. Options enable customization without changing the core program logic.