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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
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.
References in periodicals archive ?
Table II presents estimated accuracy of classifiers [U.sub.i,j] using the combination option 1 that proved to be the most fruitful.
The minimum investment for the gold note and mutual fund combination option is $25,000 in the ADIB Capital Protected Gold Note, plus $5,000 in the mutual fund.
In addition, as previously disclosed, SandRidge is undertaking a formal process to evaluate strategic alternatives, which may include divestment or joint venture opportunities associated with our North Park Basin assets and potential corporate and asset combination options with other companies.
"By means of the new alignment of the collection, new pricing and combination options, we would now like to reach all of our customers, above and beyond the loyal fans of the collection."
The process will include, but is not limited to, an evaluation of divestment or joint venture opportunities associated with its North Park Basin assets and potential corporate and asset combination options with other Mid-Continent operators, including Midstates, should it elect to participate in this competitive process.
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. Sombrero Mexican Food is also a staple in the event catering industry, with menus for any guest size.
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.