Ladder Option
An option that locks-in gains once the underlying reaches predetermined price levels or "rungs," guaranteeing some profit even if the underlying security falls back below these levels before the option expires.
Investopedia Commentary
For example, consider a ladder call option with an underlying price of 50, with a strike price of 55 and rungs at 60, 65 and 70. If the underlying price reached 62, the profit would be locked-in to be at least 5 (60-55) however, if the underlying reached 71, then the profit would be locked-in to being at least 15 (70-55), even if the underlying falls below these levels before the expiration date.
Related Links
Options Basics Tutorial
Going Long On Calls
Trading Puts - Going Short
See also: Asset-or-Nothing Call Option, Asset-or-Nothing Put Option, Barrier Option, Cash-or-Nothing Call, Cash-or-Nothing Put, Exotic Option, Knock-In Option, Knock-Out Option, Option, Vanilla Option