A barrier option which has additional (adjustable) barrier levels. Each time a barrier level is breached, the strike of the underlying is reset. This additional feature makes the option more expensive than a vanilla barrier option. It provides the holder with extra protection if the underlying price takes an unfavorable course. If the price goes in favor of the holder, the option allows him to change the strike of the barrier option. Therefore, the option enables an investor to buy the underlying at a lower price in favorable conditions, and if the market changes direction against the holder, he would be better off as he has already locked in a better rate than the initial pre-agreed rate.

This option is also known as a resettable barrier option.