A lookback option which gives the holder the right to retroactively cash in the contract at the highest value it reaches during the lookback period. For example, the holder of a lookback price call option receives the maximum difference between the price of the underlying over the life of the option and its strike price. If that difference turns out to be zero or negative at expiration, the holder receives nothing at all.

The fixed strike lookback option is also called a fixed strike lookback option.