An exotic option that allows the holder to buy or sell an underlying asset at the best possible price that can be obtained during the life of the option. The holder will either have the right to buy the underlying at its lowest price or sell it at its highest price during the life of the option. This option derives its name from the fact that the holder will have the hindsight to revise his actions towards a better result. Hindsight options have two basic types: standard hindsight options and extremum hindsight options.

This option is also known as a no-regrets option or a lookback option.