BNET Business Dictionary

Business Definition for: Option

  • a contract for the right to buy or sell an asset, typically a commodity, under certain terms.
  • the right of an option holder to buy or sell a specific asset on predetermined terms on, or before, a future date
  • Also known as Option Contract

Wiktionary Definition for: Option

  • One of the choices which can be made.
  • The freedom or right to choose.
  • finance A contract giving the holder the right, if they choose to exercise it, to buy or sell an asset at a set strike price.

Additional Resources

Health Care Reform's Public Option: Everything You Need to Know
The government-run public insurance option will continue to be a contentious topic as health care reform moves to the Senate. Here?s a comprehensive look at how it?s likely to be structured, what it might mean for your health care costs now and in the future, as well...
Tags: Health Care, Plan, Healthcare Reform, Option, MoneyWatch, House, CBO, Vertical Industries, Benefits, Healthcare, Human Resources, Public Option, Health Care Reform, Health Insurance, Insurance Premiums, Health Insurance Exchange, Uninsured, Senate Finance Committee, Nancy Pelosi, President Obama, Democrats, Republicans, American Medical Association, Harry Reid, Olympia Snowe, AMA, Medicare, Medicaid, Trigger Mechanism, Small Businesses, Congressional Budget Office, Joe Lieberman, Lisa Collier Cool
Articles 2009-11-13
The Public Option And Insurance Exchange In The House Bill
In my first post, I described the major features and basic approach of HR 3962, as well as the provisions of the bill that would go into effect more or less immediately.  This post will look more closely at some of the bill's basic insurance reform elements.  In a final...
Tags: Plan
News items 2009-10-30
Option Basics
An option is a derivative. That is, its value is derived from something else. In the case of a stock option, its value is based on the underlying stock equity. In the case of an index option, its value is based on the underlying index equity. Options come in two...
Tags: Equity, Option, Equity Analytics, Investment, Financial Services, Finance
White papers 2003-01-01
Hiding In Plain Sight: Using Medicare To Solve The â??Public Optionâ?? Conundrum
By JEFF GOLDSMITH As Senate and House Committee versions of health reform move toward unified legislation and floor votes, the most complex political challenge is how to resolve the "public option" controversy.  While one would have thought weightier issues such as the shape of Medicare reform, the taxation required to...
Tags: Medicare
News items 2009-10-21
Buying A Put Option
A put is an options contract, which grants the owner of the put the right, not the obligation, to sell the underlying security at a specific price, within a specific period. The owner of a put long the put is expecting the underlying security to decline in price. Many investors...
Tags: Option, Equity Analytics, Investment, Financial Services, Security, Finance
White papers 2003-01-01
The Public Option: Itâ??s Not About Politics; Itâ??s About the Economics of Reform
Last week, I argued that the insurance industry had declared war on President Obama's plans for healthcare reform because industry leaders sensed—or knew-- that support for a federal public insurance option was building. A week earlier,  I told an audience at a San Francisco screening of Money-Driven Medicine that I...
Tags: Plan, Health Care
News items 2009-10-25
Assignment Of Option To Purchase Real Estate
A real estate purchase option is a document that gives someone the right to purchase a piece of property at a fixed price during the term that the real estate purchase option is in effect. During the option period, the owner can not sell the property to anyone else and...
Tags: Property, Option, FreeBusinessForms.com, Real Estate, Business Operations
Tools & templates 2007-12-01
Northwest offers new FlyNow option for customers making same-day travel changes; Carrier introduces low-cost option for confirming alternative flight in addition to free standby option.
M2 PRESSWIRE-2 May 2005-NORTHWEST AIRLINES: Northwest offers new FlyNow option for customers making same-day travel changes; Carrier introduces low-cost option for confirming alternative flight in addition to free standby optionC1994-2005 M2 COMMUNICATIONS LTD RDATE:02052005 MINNEAPOLIS -- Northwest Airlines today introduced a...
Tags: carrier, FINANCE, Northwest Airlines Corp.
Research articles 2005-05-02
Public Option Waffling Enrages Left Wing
Now that the Obama Administration has signaled its willingness to back off from a “public option” and accept nonprofit cooperatives in its place, the left wing of the Democratic party is going ballistic. Former Vermont Governor Howard Dean has said reform is dead without the public option, and Ariana Huffington...
Tags: Insurance Company, Health Care, Option, Insurance, Vertical Industries, Healthcare, Benefits, Business Operations, Corporate Insurance, Human Resources, Ken Terry
Blog posts 2009-08-18
Apple again offers matte screen option for 15-inch MacBook Pro
By Neil HughesPublished: 07:30 AM EST Related AppleInsider articles:Apple may extend antiglare display option to...University claims Apple's glossy screens may...Apple quietly intros 2.66GHz MacBook Pro,...Sources: 17-inch MacBook Pro, NVIDIA Mac mini...Apple now taking orders for 24-inch LED Cinema...Confirming an AppleInsider exclusive tip from less than a month ago, Apple has...
Tags: Apple Inc., Apple MacBook, Apple MacBook Pro
News items 2009-08-11
Explaining the Level of Credit Spreads: Option-Implied Jump Risk Premia in a Firm Value Model
Prices of equity index put options contain information on the price of systematic downward jump risk. The paper uses a structural jump-diffusion firm value model to assess the level of credit spreads that is generated by option-implied jump risk premia and compounds the option pricing model, an equity index option...
Tags: Equity, Bank For International Settlements, Investment, Financial Services, Finance
White papers 2005-11-01
Digital radio test set adds direct mode test option.(TEST & MEASUREMENT)
Aeroflex has announced the Tetra Direct Mode option that provides the Aeroflex 3900 Series with direct mode call setup and parametric testing capabilities. Complementing the Tetra MS Trunked mode option the direct mode option extends the platform cap Aeroflex has announced the Tetra Direct Mode option...
Tags: Aeroflex Inc., digital radio, radio
Research articles 2006-01-01
Fitch Takes Various Rating Actions on 4 Option One NIM Notes
NEW YORK -- Fitch Ratings has taken the following rating actions on 4 Option One Net Interest Margin NIM Notes: Option One Mortgage Securities Corp. NIM Trust 2005-1 --$2.5 million Class notes affirmed at 'AAA'; Underlying Transaction: Option One 2005-1 Option One CI 4 NIM Notes,...
Tags: Fitch Ratings
Research articles 2008-05-28
Zacks.com Announces That the Experts at Option Tactics Highlight an Option for the Following Stock: Archer Daniels Midland
CHICAGO -- Jeff Carter and his team at the Option Tactics newsletter highlight an option trade for a stock in the food processing space. Take a look at an option for Archer Daniels Midland (NYSE:ADM). Click here for the full story exclusively on Zacks.com: http://at.zacks.com/?id=84 Highlights from the April...
Tags: Zacks Investment Research Inc.
Research articles 2005-04-25
Lost Stock Option Values - Is your Company at Risk for Employee Lawsuits?
In this article, the focus is on the legal issues that may arise when employees are terminated because the company for which they worked was sold and the employees forfeited stock option gains. It provides practice tips that a company should consider when adopting or amending its stock option...
Tags: Stock Option, Lawsuit, Stock, Stock Option Plan, Stock Options, Investment, Benefits, Financial Accounting, Human Resources, Stock Options & Grants, Finance
White papers 2002-02-01
The new "Hold for Pickup" option from APX Logistics and the U.S. Postal Service gives consumers the option of picking up parcels at a nearby post office.(NEW SERVICES)
The new "Hold for Pickup" option from APX Logistics and the U.S. Postal Service gives consumers the option of picking up parcels at a nearby post office. Customers are notified by telephone ... The new "Hold for Pickup" option from APX Logistics and the...
Tags: post office, U.S. Postal Service
Research articles 2005-11-01
MEI announces shareholder option agreement
SPOKANE, Wash.--BUSINESS WIRE--April 14, 1995--Micro Enhancement International Inc., a Utah corporation, has been informed that an unaffiliated third party has entered into an option agreement with certain shareholders to acquire approximately 49 percent (3,244,085 shares) of the company's outstanding common stock.The option agreement grants the holder the right to exercise...
Tags: Business Wire, FINANCE, shareholder
Research articles 1995-04-14
Falling Option Prices Make Bottom Picking Worth a Look
Option premiums have fallen considerably after peaking during last September’s tumultuous market. Although volatility in the stock market has not disappeared, the VIX still sits at a recording of 54 in the near term, a fall from record highs. The result is option prices that are not only...
Tags: US Market, Spicer Matthews
External links 2009-03-12
Zacks.com Announces That the Experts at Ultimate Option Strategies Highlight an Option for the Following Stock: Bunge LTD
CHICAGO -- Ken Trester and his team, at the Ultimate Option Strategies newsletter, say that the major indexes are near the top of their trading ranges and facing overhead resistance. Learn about an option for Bunge LTD (NYSE:BG). Click here for the full story exclusively on Zacks.com: http://at.zacks.com/?id=84. Highlights...
Tags: Bunge Ltd.
Research articles 2005-09-19
Stock Exchange to narrow strike intervals for HSBC Holdings Plc option class and the Hang Seng Bank option class.
M2 PRESSWIRE-25 April 2003-HKEx: Stock Exchange to narrow strike intervals for HSBC Holdings Plc option class and the Hang Seng Bank option classC1994-2003 M2 COMMUNICATIONS LTD RDATE:04252003 The Stock Exchange of Hong Kong Limited, a wholly-owned subsidiary of Hong Kong Exchanges...
Tags: Hang Seng Bank, HSBC Holdings Plc.
Research articles 2003-04-25