Strap


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Strap

A relatively simple trading strategy that involves buying a set of options, two calls and one put, with the same strike price and expiration date on a stock. The strap is a more focused version of the straddle, and is popular due to its unlimited profit, limited risk nature. The maximum loss that a strap can incur occurs when the equity price on the expiration date of the options is the same as the price on the date the options were purchased. In this case, the loss is equal to the sum the three-option set was purchased for. However, with any deviation in the price either up or down, the strategy recovers at least some of the cost of purchasing the options. See: Strip, Straddle

Strap

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

strap

A combination option made up of two calls and one put. The buyer of a strap profits from large variations in the price of the underlying asset, especially if it moves upward.
References in periodicals archive ?
Willcom said that the Phone Strap 2 will be released in Japan later this year in white, pink, and black.
On the beat, some officers choose to wear the leather strap under their chins while others tuck it inside their helmets perched on top of their heads.
The high-strength, patented triaxial hinges on the knee brace allow unrestricted, natural knee movement while the adjustable straps provide controlled compression for a custom fit, according to the company.
50) goes from backpack to duffel with shoulder strap and handle for an overnight trip or team practice.
For more information or to order Survival Straps for your store visit www.
A matte light blue plastic case is presented with a solid matte light blue silicone strap, light blue silicone loop and light blue plastic buckle.
The superior leather ends are tough, secure, and durable, a must to protect your valuable instrument, and the strap as a whole is made of flexible and dependable nylon.
He must have been successful because minutes later Berry emerged with a safety-pinned strap and a pale scarf casually draped over her shoulders.
Riddell's Hitter and XForce shoulder pads for youth players include features such as closed-cell foam for added protection, removable body for maintenance and cleaning and cantilevered strap attaches to pad body with velcro.
The stewards considered Sprint Up's improvement but decided not to hold an inquiry after Wylie told them the gelding appeared to have benefited from wearing the tongue- strap.
The case is polished stainless steel; a black rubber strap and brushed stainless steel buckle complete the look.
Features include: Auto strap loading, auto strap re-feed, strap-in-place signal and automatic heater blade cleaning.