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 next step is to position your full-body decoys on the floating strip of land," McDaniel said.
A total of 97 homes are planned at St Lawrence Square, around one-third of them on the disputed strip of land.
development I should caution shareholders that the strip of land remains the
Panama is a strip of land connecting North and South America.
Sherman declares that a strip of land along the Southeast coast be set aside for freed slaves; families can receive up to 40 acres.
The windfall came after a strip of land was the subject of a compulsory purchase order to facilitate the construction of a motorway.
Realtor Nelda Thompson of Nelda Thompson & Associates says that properties on the lush strip of land (protected by a conservation easement) now easily fetch between $1 million and $7 million.
Lima, a city of nine million people, is situated on a strip of land along the Pacific coast of Peru.
It occurs to me that in the Midwest corn belt, finding a strip of land capable of supporting milkweed that is more than 10 meters wide is an exception.
Chandon, one of France's great champagne producers, is already harvesting grapes in a 300-hectare strip of land that stretches from the town's main highway to the horizon.
7 million, representing reimbursement of roughly half the amount spent so far by PGW in addressing hydrocarbon contamination of the ground along its western boundary and a small strip of land currently owned by Sun.
As of March 1992, no trees will be harvested within a 200-foot strip of land along any of Shawnee's perennial streams.