Chameleon Option
An option that has the ability to change its structure, should certain pre-determined terms of the contract be met. Investopedia Says:
An example of a chameleon option would be a put option that automatically changes into an identical call option after the price of the underlying exceeds a certain price.
This is similar to a long or short straddle except investors aren't required to open two positions. Related Terms:
Call
Exotic Option
Put
Straddle
Synthetic
Underlying |