lifting a leg

Lifting a leg

Closing out one side of a long-short arbitrage before the other is closed.

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.

lifting a leg