sed 's/\(.*\)/-o \1:1/' file.txt | xargs

The sed substitution reads as: replace the text in a given line with "-o the_original_text:1". Then the xargs command takes those modified lines of text and concatenates them as appropriate for command line arguments

sed 's/\(.*\)/-o \1:1/' file.txt | xargs /path/to/command

The sed substitution reads as: replace the text in a given line with "-o the_original_text:1". Then the xargs command takes those modified lines of text and concatenates them as appropriate for command line arguments

sed ‘s/\(.*\)/-o \1:1/‘ file.txt | xargs

The sed substitution reads as: replace the text in a given line with “-o the_original_text:1”. Then the xargs command takes those modified lines of text and concatenates them as appropriate for command line arguments

sed 's/\(.*\)/-o \1:1/' file.txt | xargs

The sed substitution reads as: replace the text in a given line with "-o the_original_text:1". Then the xargs command takes those modified lines of text and concatenates them as appropriate for command line arguments