legging out

(redirected from Leg Out)

Legging Out

In a hedged investment, the act of closing one position while keeping the other open. For example, suppose one owns a stock and also holds a put option to sell that stock at a certain price in case the stock price drops significantly. In this case, legging out would involve selling the put option while continuing to own the stock.

legging out

The closing of one side of a hedged position while leaving the other side of the hedge position open. For example, an investor might buy an October call on ExxonMobil and sell short a November call on the same stock. Subsequently buying the November call to cover the short position while continuing to hold the October call results in the investor legging out.
References in classic literature ?
So I went to a tinsmith and had him make me a new leg out of tin.
The only man in that progression to hit safely was Eric Karros, in the sixth, but he was wiped off when he tried to leg out a double on the potent arm of New York left fielder Bernard Gilkey.