combination option

Combination Option

A series of option contracts consisting of at least one call and one put with the same underlying asset. The combination option is written as a single unit but each of the component contracts may be resold on the secondary market separately. Each of the contracts has different strike prices and/or different expiration dates. Combination options exist in order to hedge one's investments. An investor may exercise either the call or the put, depending on the underlying price trends over the life of the contract, and still make a profit on the transaction. See also: Cliquet, Straddle, Strangle.

combination option

An option composed of one or more calls and one or more puts. While the original combination is sold as a single unit, each part may be sold or exercised individually. Examples of combination options are spreads, straddles, straps, and strips.
References in periodicals archive ?
With a four-function design available in a handheld or standard showerhead, homeowners can enjoy a refreshing spray, a rejuvenating massage, a combination option and even a pause feature for an invigorating shower experience.
In consideration for the two biopharmaceutical products and the Combination Option, NVO will pay $500,000 to GPI.
With a triple combination option, appropriate patients may experience a simpler routine of a convenient, once-daily pill to help them control their high blood pressure.
Shareholders will be deemed to have elected pro rata the Share Option or the Combination Option, as the case may be, to the extent necessary to be within the limitations set forth above.
It seems more likely to assume that certain shareholders of Co-Maxx will choose the share and cash combination option as both NuGas and Co-Maxx trade below their net asset values.
1094 shares of stock; and shareholders who elected the combination option received, on a per share basis, $0.
The Company has modified the combination option to include the option to receive either listed fixed-rate discount notes or unlisted fixed-rate discount notes.
To exploit the market upswing, auto-injector and imaging modality vendors are exploring various combination options to promote bundled sales.
Favorites include original recipes and authentic dishes, like Carne Asada Fries, Chile Rellenos, Authentic Tortas, freshly made tostadas and a “healthy dining menu” with multiple combination options.
5 Quadrillion Combination Options That Are Hand Tailored to Customers' Exact Specifications