As-You-Like-It Option

Think: Custom option…one living outside of the normal strictures of the way in which options are daily traded.

Options are common investing tools. A quick bit of info if you're new to trading: a trader can enter a contract in which he or she can buy or sell a stock at a certain price within a certain time period. For example, if a stock trades for $60 a share now and you think it will go up, said trader can purchase the right to buy (call) it with a strike price of $70 (the already agreed to price that allows option exercise). The trader then profits from the difference in the strike price and the actual price that the stock has gone up to when you sell the stock.

If you are long a put, you're betting that the price is going to go down in value below the strike. If you long a call, you're betting that it will go up. Traders use options to test the waters while they're waiting for a specific outcome. You don't have to exercise your option, which is another upside to options. You can even unload the option if someone else is interested in buying it. When it comes to the as-you-like-it option, this is what is known as an exotic option (as opposed to a vanilla option). Basically, this gives the trader a time-specified option to go with a call (buy) or a put (sell). You can choose from either one, just like choosing between chocolate and vanilla ice cream. But you are limited to the time frame specified in your contract.