A set of component options known as cliquetlettes that expire one succeeding the other. As an option, a cliquet resets at the money (ATM), and allows for locking in the performance of an underlying asset over a specific period of time. Thanks to the cliquet mechanism, the option does not fix a single commencement and end date.

Cliquets may come in a basic form (standard or vanilla cliquets) and a non-standard or exotic form (exotic cliquets). For example, an exotic cliquet can have, in addition to the features of a standard cliquet, a host of add-ons including a global put, a put spread or a call spread, etc. The most common types of exotic cliquets include Napoleon options and reverse cliquets.