Strip

(redirected from abrasive strip)
Also found in: Dictionary, Thesaurus, Medical, Encyclopedia.

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 ?
Uniflex Strip System Abrasive wheel with replaceable abrasive strips. Discs Fingered discs for finish and sealer sanding.
These strips extend between and beyond brushes that work the abrasive strips into and around corners, fluted surfaces, hollow surfaces and small openings.
The abrasive strips do not make contact with the feed belt because they are adjusted with 1/8 to 1/16 in.