An option that consists of a series of binary options covering the full range of possible returns of an underlying security. This structure helps break down security returns into a very large number of components in an attempt to enhance the completeness of the market. Though it is a type of binary option, a supershare option has some distinguishing features. In a standard binary option, the payout (payoff) would be a specific dollar amount contingent on the underlying being above (or below) the strike. In a supershare option, there are two boundaries, upper and lower. If the underlying, at expiration date, is found to be trading between these two boundaries, the payoff would be:

Payoff = underlying / lower boundary

If the underlying is trading outside these boundaries, the holder receives nothing (the payoff is zero).