A Wild Card option is a type of option that gives the holder the right, but not the obligation, to exercise the option at any time before the expiration date. This type of option is also sometimes referred to as a "flex option" or a "Bermuda option."In contrast to traditional options, which can only be exercised on a specified date or during a specific time period, wild card options give the holder greater flexibility in deciding when to exercise the option. This can be useful for traders and investors who are seeking to take advantage of short-term price movements in the underlying asset.However, wild card options also come with higher risk and greater complexity compared to traditional options. Because the holder has the right to exercise the option at any time, the underlying asset must be continually monitored and managed, which can be a time-consuming and challenging task.In summary, a wild card option is a type of option that gives the holder the right, but not the obligation, to exercise the option at any time before the expiration date. This type of option is more flexible than traditional options but also comes with higher risk and greater complexity.
