Two-Touch?

Discussion in 'Options' started by MrAgi1, Dec 4, 2020.

Two-Touch already exist?

  1. Yes it can be replicated with binaries

  2. Yes but can only be replicated with barrier options

  3. No there is no such asset

  4. I know a retail broker that provides it

Multiple votes are allowed.
Results are only viewable after voting.
  1. MrAgi1

    MrAgi1

    I did like to know about the existence of a particular exotic option. I have seen one-touch and no-touch options and other double barrier options. However, for my personal research and tailored hedging needs, I would like to know if there is a two-touch option. Let me explain.

    Let's say SPY is at 350 I need the price to touch both 300 and 395 in the next 5 days. Now because I have two barriers that must be touched before a payout of this option it is supposed to be cheaper than a one-touch and maybe a double no-touch.

    I would like to know if there is an instrument like this already to achieve the above?
    Secondly, can I replicate it with a combination of barrier options like a down and out e.t.c or some binaries?
    Lastly, it seems complex asset valuations like this are only available at pro and not for retail customers?