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Overview

A structured option is each option that either:

  1. consists of two or more vanilla options in order to realize more sophisticated return than plain vanilla option, and/or
  2. a derivative that is highly complex and one of such derivative components is similar to an option, like exercise rights for one Party of a trade. Such derivative may contain other derivative types like swaps, forwards, futures, and some other features that help leverage return, minimize exposure etc., like buffers, caps, floors, knock-out provisions etc.

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Structured Option Types

Most common structured options / option strategies are:

  1. Option Straddle
  2. Option Strangle
  3. Option Collar
  4. Asian Option
  5. Rainbow Option
  6. Call Spread Option
  7. Digital Option
  8. Swaption
  9. Barrier Option

Option Straddle

Option Straddle is an option strategy where one party buys/sells both call and put option with the same Strike Price, underlying asset and Expiration Date.

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