An OVERTHECOUNTER COMPLEX OPTION that allows the buyer to lock in gains at prespecified evaluation intervals if the option is INTHEMONEY at such points; gains are not relinquished if the market subsequently retraces. If the option is OUTOFTHEMONEY on an evaluation date the STRIKE PRICE resets ATTHEMONEY based on the new market level. Also known as a RATCHET OPTION. See also LADDER OPTION, SHOUT OPTION. CLO See COLLATERALIZED LOAN OBLIGATION.
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