long leg

Also found in: Dictionary, Wikipedia.

Long leg

The part of an option spread in which an agreement to buy the underlying security is made.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Long Leg

In an option spread, the portion that is a long position. For example, if a spread consists of a long position on one option and a short position on a similar option, the long position is called the long leg. It should not be confused with a leg in a swap.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

long leg

The side of an option spread (that is, one option bought long and one option sold short) that an investor is long. With a spread that involves owning a June 20 put and being short a March 20 put, the June 20 put represents the long leg. Compare short 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.
Mentioned in ?
References in classic literature ?
Jumping down, he watched it until the long legs stopped wiggling, when he knew it was quite dead.
Yashvin got up too, stretching his long legs and his long back.
"Why, Tom, you don't wear such gentlemanly trousers-- you haven't got half such fine long legs," said Jonah to his nephew, winking at the same time, to imply that there was something more in these statements than their undeniableness.
He had very long legs, a yellow face, and a slight lisp, which at first was rather ridiculous.
There were sparrow hawks, with white breasts, and kestrels, and down the slopes scampered, with their long legs, several fine fat bustards.
Aug 40s were opened June 10th as the long leg of the Aug 38.5/40 put spread, bought for 60c with EEM near $41.78.
Cherryl Orrick took the honours for fastest 8km long leg, and Gerry Shaw in the 4km short leg.
Young Harry Shelbourne, on leg two, dropped to 62nd in 18.39 while Ed Pritchard, who had been under the weather, gritted his teeth around long leg three, coming home 64th in 33.07.
Corstorphine AAC moved through into first, in spite of Michael Wright's strong effort of 31.26 on his long leg, and the gap increased in the fifth despite Dale Colley's determined chase.
In addition, several researches [1, 15, 16] noted that short leg exerted more forces than the long leg during static standing.
And with such long leg feathers, the animals probably would have tripped all over themselves while walking.--E.