The Law Dictionary

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COMPOUND OPTION STRATEGY Definition & Legal Meaning

Definition & Citations:

A package of OPTIONS created to provide unique RISK MANAGEMENT investment, or speculative results that cannot be achieved through simple positions. Common compound strategies include BULL SPREADS, BEAR SPREADS, STRADDLES, STRANGLES, and TIME SPREADS. See also DIRECTIONAL STRATEGY, SPREAD, VOLATILITY STRATEGY.


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