Option types are characteristics or specs of an item or product
Here are the steps in making Option Types
Step 1

Then click on catalogue administration
Step 2
After clicking on catalogue administration, you will now see this greybox filled with 4 tabs
Click on option types
Step 3
After you have clicked on option types , you will be redirected to this page.Click on add option types
Step 4
After filling the textboxes, click next

Step 5
After clicking the Save button, you will now see the option type that you've just created on the list