Bermuda Option

When you have enough money, it's the ability to spend the rest of your life hanging out on a beach in Bermuda.

It's also the name of a position you can take in the options market. Bermuda options combine aspects of so-called American and European options (See: Atlantic Spread). Where else would Europeans and Americans choose to meet each other except Bermuda? (Rio perhaps? L.A.? Certainly not Greenland...)

In brief, a European option can be exercised only on a specific, pre-set date. Meanwhile, an American option can be exercised at any time before its set expiration. A Bermuda option has multiple potential exercise points, though they come at regular intervals.

Think of a European option as driving a car down a straight road that only goes between two points, like a remote desert highway ("cool wind in my hair/warm smell of colitas, rising up through the air"). Meanwhile, an American option is like having an all-terrain vehicle on the same highway. You can't go beyond the final destination, but you can get off the road any time, at any place ("you can check out any time you like/but you can never leave").

Now, a Bermuda option is like a driving on a highway with regular off ramps (no "Hotel California" lyrics really fit here, so we'll just say "so I called up the captain/'please bring me my wine'" just because it's fun to order wine). You can't go offroading anywhere you want, but you have choices as to when/where you leave the road.