There should be another option. The "Wave" button will do as follows.
It will first pull, but it will then push, and it will repeat this over and over. if you have a tiny ship, you could make your ship go 360*, turning the object controlled by the "Wave" Option, into a yoyo.
How this could work ingame.
Let's say you have a mod that has melee weapons, but the ship can't get close enough. You could have a ship with the tractor beam pull the ship with you. When an enemy approaches, you could activate the wave button at the right time, thus causing your melee ship to be launched at the enemy, causing massive amounts of damage.
Simplified
The button would be a risk-reward option. Do it right, and watch your foes (And maybe if you have slow-moving friends) fly off in a direction. For teams, this button could really work with heavy carriers, launching and pulling in fighters. For free-for-all, you could watch as your foes get turned into bowling balls, and get launched into the ring of death.