This is taken from our page of instructions with some additional explanation:

The FLAG card is a card with a twist.  It can be utilized as an IDENTICAL card or a WILD card.  *The FLAG card is the ONLY card that can be changed back and forth (from a Red Book to a Black Book) within the SAME TABLE GROUP at any time PRIOR to closing the book.  (This means a player has an option to call the book a black or a red book upon closing the book.  A PLAYER CANNOT PICK UP THE FLAG CARD AND PLAY IT IN A DIFFERENT GROUP OF CARDS.)  Our game adheres to the old adage that “a card laid is a card played”.

The option of making it a red (natural) book has to do with this; a player plays the FLAG card with 2 cards to help make a meld.  As the play continues the player ends up with 4 more of the natural cards that were played with the FLAG card.  At that point all 6 natural cards are played with the FLAG which makes the book RED or NATURAL.

The option of making the book a black book is usually when a player needs a black book to go out and has no hope of getting more of the natural card but has wild cards the player can play 2 more wild cards in the group, call the FLAG card a wild card along with 2 other wild cards and 4 natural cards and fold it up as a black book.

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