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Definition of 'Knock-In Option'
A latent option contract that begins to function as a normal option ("knocks in") only once a certain price level is reached before expiration.
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Investopedia explains 'Knock-In Option'
Technically, this type of contract is not an option until a certain price is met, so if the price is never reached it is as if the contract never existed. Knock-ins are a type of barrier option that may be either down-and-in option or an up-and-in option.
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Search results for 'Knock-In Option'
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http://www.investopedia.com/articles/bonds/08/reverse-convertible-note.asp
... Because RCNs consist of two parts, a debt instrument and a put option, your return ...
they believe that the underlying stock will not drop below the knock-in level ...
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