An option that gives its holder the right to decide before maturity whether to go with it as a call or a put. Typically, the call and put have the same strike price and time to maturity. But in more complex chooser options, the call and put don’t necessarily have to be of the same strike and maturity. For a standard chooser option, the value of the option at the time when the choice is made is the maximum of the value of the underlying call or that of the underlying put.

This option is also termed “as-you-like-it option” or “pay-now-choose-later option“.