Low Outlay Geared Option (LOGO)

LOGO vs. Standard Option (2 graphs)
A low premium call option that offers gradually declining upside participation. The payout formula of a LOGO at maturity is any positive value of the expression:
(underlying price at maturity minus strike) / underlying price at maturity. As a LOGO goes in the money, its payout relative to a traditional option is gradually reduced, as if by multiplying the standard option payout by the ratio of the strike to the underlying price at maturity.

Glossary * L