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 never have any regrets about not selling it or exercising it at the wrong time. No-regrets options have two basic types: standard no-regrets options and extremum no-regrets options.

This option is also known as a hindsight option or a lookback option.