Preview must be a top level declarations or in a top level class with a default constructor

As the error indicates. Previews must either be top-level functions (functions outside a class) or be in a class with a default constructor.

My recommendation would be to either extract your composable and preview out of the class in the same file or extract them into a separate file all together and have the content composable and viewholder separated.

OptionsViewHolder.kt

class OptionsViewHolder(val binding: ItemLayoutBinding) : Recyclerview.ViewHolder(binding.root) {

    private val context = binding.root.context

    companion object {
        fun from(parent: ViewGroup): OptionsViewHolder {
            return OptionsViewHolder(
                ItemLayoutBinding.inflate(
                    LayoutInflater.from(parent.context),
                    parent,
                    false
                )
            )
        }
    }

    fun bindChoice() {
        binding.itemComposable.setContent {
            Options()
        }
    }
}

@Composable
fun Options() {
    xyz..
}

@Preview
@Composable
fun OptionsPreview() {
    Options()
}