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 ?
Strapping processes can be pre-programmed and automatically adjusted to specific requirements.
Steel strapping does not stretch as much as plastic under tensional loading, nor can it recover as much in length during load contraction and expansion caused by changes in temperature or moisture," Ruud explains.
The configurable strapping unit drops the straps into a container or the unit's storage drawer which works on an elevator system and holds up to 10 straps.
With the drive-thru strapper, Bosch significantly increased the speed of the strapping process.
Contact Gordian Strapping on tel 01256 394400 or visit www.
Gordian supplied ten OMS 875 A/B Side Seal Strapping Machines each equipped with an OMS TR14 HD Strapping Head and a 500kg press.
Mosca enjoys a proven reputation for designing and building innovation, high-speed strapping equipment, and has now launched three models that combine Mosca's existing features with a stainless steel finish that is corrosion resistance and washdown tolerant to an IP56 rating.
The tool is supported during the strapping process ensuring that it cannot be dropped and damaged.
The SMG50 comes in two sizes and can cope with products up to 800mm long x 600mm wide, while there are three size options for the SMG55 with the largest capable of strapping loads of up to 800mm x 800mm.
The strapping head is then moved by light touch control to the required height, with the operator taking the strap around the load and feeding it back into the other side of the strapping head.
Thus, any strapping machine must be capable of being quickly adjusted to strap pallets of different sizes and weights.