When would you use a chooser option?

Before a major announcement (earnings, central bank meeting) when you expect a large move but don't know the direction. It provides straddle-like exposure at lower cost.

How is a chooser option priced?

A chooser option's price equals the maximum of a call and a put at the choice date, typically valued using put-call parity and Black-Scholes.

Chooser Option Pricing Calculator

Price a chooser option where the holder decides at a specified date whether the option becomes a call or a put with a given strike and expiry. Chooser options are ideal when expecting high volatility but uncertain direction.

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$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Price a chooser option where the holder decides at a specified date whether the option becomes a call or a put with a given strike and expiry. Chooser options are ideal when expecting high volatility but uncertain direction. Use the chooser option result to inform your calculation.

Chooser Option Pricing Calculator

How to Use

Frequently Asked Questions

When would you use a chooser option?

How is a chooser option priced?