The meaning and definition of Option -
The right to buy or sell a security at a specific price within a stated period of time. Brokerage clients who wish to buy or sell options must be pre-approved and sign an option agreement describing the rule and regulations pertaining to options trading. Options carry a high level of risk and are not suitable for all investors. Subject to approval, Wells Fargo Advisors, LLC offers its brokerage account holders options trading ability. Options are expensive compared with other investments; their pricing is based, among other factors, upon the volatility of the underlying security.