I already tried the 'Use Option as meta key' but as strange it may sound, didn't work out.
I'm glad. I'm a Vim user, so I would not know how to test the meta key.
And well, iTerm, it does what i need. Thank you for the idea and your time.
iTerm has been my full time terminal emulator for years. I spend most of my work day in iTerm.
If you have a chance, you should explore some of the other options. Personally, I like the Bookmarks, so I can start a new Tabbed window ssh'ing into a remote system. Also being able to associated a Command-Control-key combo as a hotkey for a Bookmark.
I like iTerm -> Preferences -> Mouse -> Copy on Selection, which means I can select some text, and it is automatically put in the Copy Buffer. I can then just Command-V to paste it (or in my case I have a many buttoned mouse, with one of the buttons set to Command-V; makes it very nice to copy and paste in iTerm).
And in iTerm -> Preferences -> Mouse -> Characters considered part of word, is very nice in that I can customize it so that a double-click selects words according to my preferred rules.
Good luck with iTerm.