Strip


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Strip

Variant of a straddle. A strip is two puts and one call on a stock. A strap is two calls and one put on a stock. The puts and calls have the same strike price and expiration date. See: Strap.

Strip

A bearish investment strategy in which an investor holds two puts and one call on the same underlying asset with the same expiration date and strike price. An investor uses a strip when he/she believes that the price of the underlying will decrease substantially. If it does, the investor stands to make a substantial profit by exercising the puts. On the other hand, if the underlying increases in price, the investor will not suffer a substantial loss because the strike price of the call protects him/her. See also: Call backspread ratio, Strap.

strip

A combination of two put options and a call option. The buyer of a strip profits from large variations in the price of the underlying asset, especially if it is moving downward.
References in periodicals archive ?
The top side edge of the second sheet strip along which the elastic member is bonded is moveable independently of the top side edge of the first sheet strip.
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Strip heaters designed for efficient heat transfer and easy installation.
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A year later, by the time her second son was born, she was a fulltime strip dancer.
Project M was a full-size plant dedicated to determining whether something could be reliably done that had only been shown to be possible on a pilot basis: Casting commercial quality low-carbon steel through the twin-roll strip casting process.
Malarkey, prompting papers to move the strip to the opinion page, to threaten to drop it entirely, and, in one case, to alter Malarkey's face to tone down the senatorial resemblance.
The east, public strip has a long wall of glass which looks out over a green bank sprinkled with young trees; the grass comes down to the very bottom of the glass, and almost seems to come into the building.
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