An exotic barrier option (specifically a double no-touch option) which has an upper barrier and a lower barrier that both determine the option’s payout. The option’s payoff is payable if the underlying price remains inside the range formed by the upper and lower barriers at all times until expiration date or if the underlying hits the upper barrier and remains in a new range to be set around the upper barrier, or if the underlying breached the lower barrier and remains in a new range to be set around the lower barrier.

In this sense, a James-Bond range option is a range binary option with two lives (this is reminiscent of James Bond’s movie “You Only Live Twice”). If the initial range is breached, a new range is set (usually around the breached barrier). If this new range is breached, the holder would receives no payoff.