The selling of one part of a combination option while retaining position in the remaining part. A leg is one side of a spread transaction like a position involving a call option with a particular exercise price and expiration date combined with a put option that has the same exercise price and a different expiration date. Selling one of the options is typically termed lifting a leg. For instance, a holder of a straddle could sell one leg (either the call or the put) when the premium is sufficient to make the entire position comfortably in the money.
This tactic is also known as lifting a leg or taking off a leg.
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