Browse:  #  A  B  C  D  E  F  G  H  I  J  K  L  M  N  O  P  Q  R  S  T  U  V  W  X  Y  Z 

Ladder Option

Ladder Option Definition

An option contract that allows the investor to lock-in gains on the underlying security when predetermined price levels are reached. This method guarantees some profit even if the price falls back below these levels before expiration of the option.

For example, when the underlying price is 100, the strike price is 110, the predetermined price rungs are at 115 and 120 and the underlying price reaches 118, the holder is guaranteed at least a profit of 3, even if the price subsequently falls below 100 before the expiration date.

RELATED CATEGORIES
Options & Futures







Ask a Question

Learn the famous formula for money-making, based upon the THIRTEEN PROVEN STEPS TO RICHES! Get your FREE Copy & Instant Access to Think and Grow Rich by Napoleon Hill just by signing up.
 
   
Newsletter cover
Browse:  #  A  B  C  D  E  F  G  H  I  J  K  L  M  N  O  P  Q  R  S  T  U  V  W  X  Y  Z