Combination strategy

Combination strategy

A strategy in which a put and call with different strike prices and the same expiration are either both bought or both sold. Related: Straddle

Combination Strategy

An option strategy in which one buys or sells two options on the same underlying asset with the same expiration date but with different strike prices. A combination strategy allows one to profit from the difference in strike prices on or before the expiration date. See also: Spread, Straddle.