Legging In

A term used when referring to the execution of positions with more than one component. When trading one component of a position prior to the other(s), a trader is said to be “legging in” to any component of the trade that is executed thereafter. For example, when trading a straddle both the call and put must be bought or sold. If a trader first sells the call, he/she is then said to be “legging in” to the put component of the trade.

This is a definition, not a recommendation. Options carry risk and can expire worthless. See how the desk actually trades at TrueTrader.