The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

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.

Disclaimer

This article contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.