diff --git a/lib/cask/cli.rb b/lib/cask/cli.rb
index b2c22a4d8..7252d16cf 100644
--- a/lib/cask/cli.rb
+++ b/lib/cask/cli.rb
@@ -38,17 +38,29 @@ class Cask::CLI
     }
     list.sort
   end
-  
-  def self.process_options(args)
-    allrgs = Shellwords.shellsplit(ENV['HOMEBREW_CASK_OPTS'] || "") + args
-    OptionParser.new do |opts|
+
+  def self.parser
+    @parser ||= OptionParser.new do |opts|
       opts.on("--appdir=MANDATORY") do |v|
         Cask.appdir = Pathname.new File.expand_path(v)
       end
-    end.parse!(allrgs)
-    return allrgs
+    end
   end
 
+  def self.process_options(args)
+    all_args = Shellwords.shellsplit(ENV['HOMEBREW_CASK_OPTS'] || "") + args
+    remaining = []
+    while !all_args.empty?
+      begin
+        head = all_args.shift
+        remaining.concat(parser.parse([head]))
+      rescue OptionParser::InvalidOption
+        remaining << head
+        retry
+      end
+    end
+    remaining
+  end
 
   class NullCommand
     def initialize(attempted_name)
diff --git a/lib/cask/cli/edit.rb b/lib/cask/cli/edit.rb
index 4d6095ee8..23d5de3a0 100644
--- a/lib/cask/cli/edit.rb
+++ b/lib/cask/cli/edit.rb
@@ -1,8 +1,10 @@
 module Cask::CLI::Edit
   def self.run(*arguments)
-    cask_name, *_ = *arguments
+    cask_name, *args = *arguments
     cask_path = Cask.path(cask_name)
-    raise CaskUnavailableError, cask_name + ".rb" if cask_path.nil? || !cask_path.file?
+    unless cask_path.exist? || args.include?('--create')
+      raise CaskUnavailableError, "#{cask_name}, add --create to make a new cask with this name"
+    end
     exec_editor cask_path
   end
 
diff --git a/test/cli/edit_test.rb b/test/cli/edit_test.rb
index feb5c8357..0a00e56c6 100644
--- a/test/cli/edit_test.rb
+++ b/test/cli/edit_test.rb
@@ -36,4 +36,17 @@ describe Cask::CLI::Edit do
       [Cask.path('adium')]
     ]
   end
+
+  it 'raises an exception when the cask doesnt exist' do
+    lambda {
+      Cask::CLI::Edit.run('notacask')
+    }.must_raise CaskUnavailableError
+  end
+
+  it 'allows new casks to be created with the --create flag' do
+    Cask::CLI::Edit.run('brand-spankin-new', '--create')
+    Cask::CLI::Edit.editor_commands.must_equal [
+      [Cask.tapspath.join(Cask.default_tap, 'Casks', 'brand-spankin-new.rb')]
+    ]
+  end
 end
diff --git a/test/cli/options_test.rb b/test/cli/options_test.rb
index aae62ed1f..0727fbc07 100644
--- a/test/cli/options_test.rb
+++ b/test/cli/options_test.rb
@@ -2,21 +2,24 @@ require 'test_helper'
 
 describe Cask::CLI do
   it "supports setting the appdir" do
-    shutup do
-      Cask::CLI.process %w{help --appdir=/some/path}
-    end
+    Cask::CLI.process_options %w{help --appdir=/some/path/foo}
 
-    Cask.appdir.must_equal Pathname.new File.expand_path "/some/path"
+    Cask.appdir.must_equal Pathname('/some/path/foo')
   end
 
   it "supports setting the appdir from ENV" do
-    ENV['HOMEBREW_CASK_OPTS'] = "--appdir=/some/path"
+    ENV['HOMEBREW_CASK_OPTS'] = "--appdir=/some/path/bar"
 
-    shutup do
-      Cask::CLI.process %w{help}
-    end
+    Cask::CLI.process_options %w{help}
 
-    Cask.appdir.must_equal Pathname.new File.expand_path "/some/path"
+    Cask.appdir.must_equal Pathname('/some/path/bar')
+  end
+
+  it "allows additional options to be passed through" do
+    rest = Cask::CLI.process_options %w{edit foo --create --appdir=/some/path/qux}
+
+    Cask.appdir.must_equal Pathname('/some/path/qux')
+    rest.must_equal %w{edit foo --create}
   end
 
   after do