Balloon Option

Balloon Option

An option contract in which the strike price increases by a certain ratio after the price of the underlying asset reaches a stated threshold. For example, if the underlying asset goes above $50 per unit, the strike price may increase by $3 for every extra dollar that the underlying reaches. This type of option is most common when the underlying asset is a currency.
References in periodicals archive ?
With the addition of the wire-guided version, Cook now offers a Hercules Balloon option for the entire GI tract including the pylorus, duodenum and colon.
In the balloon option, players must race the course, breaking all the balloons along the way.