Leg
One component of a multi-part options strategy.
Explanation
Complex strategies like spreads, straddles, and condors consist of multiple legs. Each leg is an individual option contract. "Legging in" refers to executing each leg separately rather than as a single order, which carries execution risk. "Legging out" means closing individual legs of an existing position.
Example
An iron condor has four legs: a short put, a long put (lower strike), a short call, and a long call (higher strike).