To add to the excellent list (given by @CodeCowboyOrg) of situations where OPTION(RECOMPILE) can be very helpful,
- Table Variables.
When you are using table variables, there will not be any pre-built statistics for the table variable, often leading to large differences between estimated and actual rows in the query plan. Using OPTION(RECOMPILE) on queries with table variables allows generation of a query plan that has a much better estimate of the row numbers involved. I had a particularly critical use of a table variable that was unusable, and which I was going to abandon, until I added OPTION(RECOMPILE). The run time went from hours to just a few minutes. That is probably unusual, but in any case, if you are using table variables and working on optimizing, it's well worth seeing whether OPTION(RECOMPILE) makes a difference.