An option to buy an option is called a compound option.

Name: An option to buy an option is called a compound option.
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Quizplus · Accepted Answer

A compound option is an option that gives the holder the right, but not the obligation, to enter into another option agreement. This second option is often called the underlying option or the option on the option. Therefore, an option to buy an option is a compound option.

An Option to Buy an Option Is Called a Compound