combination option

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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 ?
We would like cost estimates for five landline/cell-phone combination options.
Combination options of classifiers described above can be applied without significant statement changes to classification of individual images as well.
Guests can then choose to mix in an assortment of fruit, candy, nuts or baked goods for other combination options.
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
Additional combination options are available, providing further customization options for various materials and customer expectations.
The connectors integrate both the electrical and mechanical design into a scalable single-molded device that enables numerous design configuration and material combination options, allowing medical device designers the flexibility to select plating and materials.
Earlier, on June 6, 2010, RCom's board of directors had in- principle approved a proposal to induct strategic and/ or private equity investors for a 26 per cent shareholding in the firm at an appropriate premium to the prevailing market price, and/ or appropriate consolidation/ combination options.
KraussMaffei has also extended the selection matrix for the LRX series, so that customers have more combination options than with the LR.
He now sees more college students and more female customers, and is taking their suggestions into account for a revised fall menu, which will include more combination options and greater salad variety.
Remington offers a Cable Lock and Trigger Block; Beretta has a Security Pack; Pro-Lok provides the GunLok; and Master Lock markets cable and trigger locks, with key and combination options.
It has heat, bubble and massage combination options, hinged foot rest lid and on/off indicator.