An option that is artificially constructed by combining (buying and selling) other options simultaneously. This option can lower the high cost of plain vanilla options, though it may introduce other risks. Complex positions constructed with long and short components can be intricate and difficult to manage. For example, a call ratio can be net long one day and net short the next if the underlying rises rapidly. Therefore, investors should first understand the behavior of a structured option with regard to time decay and changes in the price of the underlying. Other issues that are also important include: bid-ask spreads, volatility swings, put-call parity violations, liquidity, etc.

Further examples of structured options may include: risk reversal, butterfly, condor, albatross, jelly roll, etc.