Legal Definitions - optionor

Definition: An optionor (also spelled optioner) is a person or entity that grants an option to another party. An option is a contract that gives the holder the right, but not the obligation, to buy or sell an asset at a predetermined price within a specified time frame.

Examples:

• John is the optionor who granted an option to Mary to buy his house for $500,000 within the next six months.
• The company acted as the optionor and granted its employees the option to purchase company stock at a discounted price.

These examples illustrate how an optionor grants an option to another party. In the first example, John is the optionor who gave Mary the right to buy his house at a specific price within a certain time frame. In the second example, the company acted as the optionor and gave its employees the right to purchase company stock at a discounted price.