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Chooser option - Financial definition

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Concise definition of the term chooser option

A type of option where the option buyer chooses at a specific date whether the option is a call or a put. The strike and the maturity of a chooser option are predetermined and are usually the same for the call and the put.

Comprehensive definition of the term chooser option

Similar to a straddle but cheaper, because the holder must choose at a predetermined date, chooser options are a good way of speculating on extreme moves.

Additional information related to this definition

Definitions of related terms

Call option  •  Option  •  Put option  •  Straddle

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