A ladder option that has a floating strike price. This option , which carries no predetermined strike price, allows the holder to lock in any gains attained over the course of the option’s life where and wherever the underlying price becomes better than preset market levels (the rungs). Accumulated gains will never perish if the market retraces thereafter. The amount of gains is calculated by comparing the expiration price and ladder rungs at maturity.

The initial strike is reset whenever the underlying price reaches a preset ‘rung’ in the ladder rather than on specific dates (as is typical of a cliquet). For example, a ladder call with an initial strike set at-the-money at $50 and rungs set at $5 intervals above that level. If the underlying hits $58 anytime the strike is reset to $55 and the $5 profit is locked in. If the underlying, later on, hits $62 a further gain of 5 is locked in and the strike is again reset, this time to $60, and so on and so forth.