Dictionary : Chameleon Option
An option that has the ability to change its structure, should certain pre-determined terms of the contract be met.
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.
See other terms from our Dictionary:
# | A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z