Combination

	Definition of 'Combination' When an investor holds a position in both call and put options on the same asset.
	Investopedia explains 'Combination' There are various types of combination spreads, including straddles and strangles.

Related Definitions

Call

1. The period of time between the opening and closing of some future markets wherein the prices are established through an auction process.2. An option contract giving the owner the ...
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Option

A financial derivative that represents a contract sold by one party (option writer) to another party (option holder). The contract offers the buyer the right, but not the obligation, to ...
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Put

An option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time. The buyer of a put option ...
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- Straddle
  
  An options strategy with which the investor holds a position in both a call and put with the same strike price and expiration date.
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- Strangle
  
  An options strategy where the investor holds a position in both a call and put with different strike prices but with the same maturity and underlying asset. This option strategy is ...
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