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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
The Rocket Club, on Broad Street, where the strip of land was disputed
The supposedly sizeable strip of land, which would have been within French territorial waters, does not appear on French government maps.
To resolve this, Smith asked Piazza to force Deltic to sell the small strip of land to him.
"When the state widened Pleasant Street in 1959 it took an additional strip of land from the Meadow Lane properties.
The new strip of land doubles the size of the easement to 50 feet.
As the foundation for building his narrow strip of land, McDaniel used a wide plank.
operation comes in response to continued Israeli incursions in the region..." Israeli forces have incurred nearly daily into the narrow strip of land since the 23 days of major attacks in late December and January that killed approximately 1,400 Palestinians.
THOUSANDS of miles away on a tiny strip of land in Sri Lanka hundreds of civilians have been trapped, caught up in heavy shelling.
The Resort is on a strip of land 1.5 miles from mainland Barbuda.
Bridal Veil is separated from American by a small strip of land known as Luna Island and is approximately 56 feet wide.
The YHA then applied to buy the strip of land to gain access to their proposed development of three properties.