I found online that Mac OS Lion has option similar to "Cut" option of windows. I found one link which shows the option as :
I am using OS Lion, but this option is not visible, even when I copy file/folder.
Am I missing something or any update?
There is a strong hint in the screen shot you posted: Hold down the Alt key. Then the option will appear in the menu.
Oh, and one big difference from Windows: On the Mac, the decision whether to move or copy is made in the second step, not the first: I.e., (1) select file(s), select copy, and (2) move to destination folder, select copy or move item here.
Just “Copy” as usual, but when pasting, keep the Option (Alt) key pressed while selecting the “Edit” menu and “Copy selected items” will be replaced by “Move items here”. Finder will then cut and paste instead of copying and pasting. Works with the keyboard shortcut too (i.e. press Cmd+Option+V ).