What is a Leg Out?
How Does a Leg Out Work?
Let's say John Doe conducts an options straddle, which involves buying a call and a put with identical expiration dates. His broker first has to purchase the call, then purchase the put, though he does this nearly simultaneously. John decides that he wants to get out of the put transaction, so he calls his broker and says he wants to leg out of the put. The broker legs out by selling the put that John just bought.
Why Does a Leg Out Matter?
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.