leg lifting

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Leg Lifting

The act or practice of selling one option contract in a combination option while maintaining one or more different ones. This will likely destroy the option strategy of the combination option. Therefore, one only does it when the premium makes the entire combination profitable. See also: Cliquet, Straddle, Strangle.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

leg lifting

The selling of one part of a combination option while retaining possession of the remaining part. For example, an owner of a straddle may sell one part (either the put or the call) when the premium is sufficient to make the entire investment profitable. Also called lifting a leg, taking off a leg.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.