An option which gives the holder the right to choose between receiving a vanilla call option or a vanilla put option at a preset date in the future. Typically, the call and put have the same strike price and time to maturity. But in more complex pay-no-choose-later options, the call and put need not necessarily be of the same strike and maturity. For a standard pay-now-choose-later option, the value of the option at the time when the choice is made is the maximum of the value of the underlying call or that of the underlying put.

This option is also known as a chooser option or an as-you-like-it option.