An option that gives its holder the right to choose at a pre-specified time (before maturity) whether the option is a call or a put.
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An option contract in which the option holder may choose at some point during the life whether the option is a call or a put. This allows the option holder the greatest possible leeway depending on price movements in the underlying asset. A chooser option sets the expiration date and the strike at the time it is entered. See also: Exotic option.
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An option that permits the owner to choose whether to use the security as a put or a call after the option is purchased. The exercise price and expiration date are specified at the time of purchase.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.