lifting a leg

Lifting a leg

Closing out one side of a long-short arbitrage before the other is closed.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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

lifting 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.