One of the multiple component options that form a cliquet. Each cliquetlette expires at its respective date, with all the set of cliquetlettes expiring at successive times. This style of succession provides a mechanism whereby payoff and returns on many products are guaranteed to be realized up to the cliquetlette resetting at the money (ATM). Examples of such products include equities and FX products.
Cliquetlettes reset periodically: monthly, quarterly, semi-annually, or annually. As part of the overall cliquet structure, cliquetlettes allow for locking in the performance of an underlying (price/ rate) over a specific period of time. Thanks to the cliquet mechanism, the option does not fix a single commencement and end date.
