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This case analyses tourist and recreational fishing as an exercise in strategic real options. It analyses several types of commonly observed real options and provides numerical examples as illustration of how these embedded real options enhance project value and when it is optimal for managers to exercise these options and to effect strategic changes. Managers respond to changing market conditions with decisions that reflect both short-term and long-term adjustments to their businesses. To determine the viability of a particular new project, or a new mode of operation, conventional finance textbooks prescribe the Net Present Value (NPV) based on Discounted Cash Flow (DCF) analysis. Recent advances in the theory of real options, however, point to the serious shortcoming of DCF analysis in the presence of operational flexibility. Operational flexibility is widely observable in many business situations. By ignoring strategic flexibility in a project, conventional NPV can lead to erroneous conclusions, under investment, and lost opportunities. This case was sponsored by the Indiana University CIBER Case Collection. There is a Chinese translation available ''C102-031-1''.