Tag options enhance the applicability of Linodef tags and make them expandable without the need for changing their structure. There are two kinds of options: Regarding the usage of the options there are no differences between element type options and modification options. Some options need a value. They are assigned the following way:
option="value"
Value may contain all 8-bit characters except ] and ". The following options are available:

Element types

nid
ID refers to a node (optional, always active if other ID types not set). ID = node ID (number).
tid
ID refers to a taxonomy term. ID = term id (number).
viewid
ID refers to a view. ID = viewname (alphanumeric).

Embed modifications

For all element types:
nolink
The embedded element is not linked.
linktext="%text"
Instead of the node title, taxonomy term, field value etc this custom text will be linked. This option replaces the old Linodef tag <#nid>%text</#> which is now deprecated.
For element type node (nid):
translation="%language"
If the embedded node has a translation in the specified language than the translated node is embedded instead. Senseful if you embed a node which has no translated node yet but you want to embed the translated node as soon as it is created. As value use the abbrevation of the language. Often a Drupal language uses the abbrevation defined by ISO 639-1/2, e.g. translation="de".
For element type view (viewid):
viewtitle
Only the viewtitle with a link to the view will be embedded. The link heeds the values for viewdisplay and viewargs. By default the embedded view is not linked to itself, because a view contains HTML block tags what would cause a weird output if surrounded with an inline link tag. So if you would like to embed and have a link to the view then use a second tag with this option.
viewdisplay="%display"
Choose the view display that will be shown. If the input type Linodef is part of uses a HTML filter then make sure that those HTML tags used by the view are allowed by the HTML filter, e.g. <table> for view displays using a table. Otherwise the embedded view will look weird.
viewargs="%arguments"
Arguments passed to the view. Separate them by &, e.g. viewargs="Satyr&Pan&Faunus&Centaur".