An option or set of options that consists of one put and one call or more on either leg. The individual options may be exercised or resold each by its own, though initially all components are handled as a single position (a unit or package). Examples include strangles, spread, strips, straps, straddles, etc.

A component option might imply any package of multiple options, with different types and features (for more details, see: combination, leg).