Chooser Option

The chooser option is for those who like to think over their investing decisions. Or you might call them "indecisive people" if you want to get mean about it. The chooser option gives the investor time to decide between a call and a put option at expiration. This option is ideal for securities that are expected to be volatile, but the investor isn’t sure which way that volatility will go.

Chooser is considered an exotic option because it isn’t a standard option on the American or European exchange. This option is similar to a saddle option in that a call and put are both purchased at the same strike, but only one at a time is exercised, so it’s a bit cheaper to buy than a saddle.

The chooser is more expensive than the standard option though, so you have to pay a little for indecision. Generally the expiration date won’t change regardless of what option is used.