Strip

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Related to strip grazing: continuous grazing, set stocking

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 ?
Each month, we retracted the fence proportionally to expose the crop; hence, the name strip grazing. This worked both for warm and cool season plantings, depending on geographic location.
"If strip grazing with cattle it may be advisable to use a back fence to protect the regrowth, whilst with sheep it is often better to split paddocks into smaller areas to allow animals to be moved on more quickly.
Now, effective and relatively inexpensive temporary electric fencing is available to protect everything from small animals such as chickens in the barnyard or in pastured poultry programs to larger animals such as riding horses out for weekend trail fides or involved in strip grazing.
All farms used strip grazing in winter and the cows were grazed on the properties all year round, a traditional practice in the Waikato.