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 ?
Dr Steven Mitchell, a research scientist leading the work on strippable coatings, said: "Ultimately, what we'd like to create is a coating that changes colour to indicate it's been contaminated, decontaminates itself, then returns to the original colour when it's clean.
Other coal deposits favored by the regulation - e.g., strippable coal deposits in the west - had their asset values increased.
The collection contains numerous borders, and will be strippable and scrubbable.
Many wall coverings made within the past 10 years are "strippable," meaning the patterned surface layer can be peeled, intact, from the paper backing (Photo 1).
Wyoming's remaining strippable reserve base is estimated to be 1,600 Mt and identified resources remaining to a depth of 1,800 m in Colorado are 54,000 Mt.
* Spray poly strippable coating was applied to asbestos work-area floors and walls to isolate and seal the contaminated work area from clean, occupied areas of the building.
Every Winchester Model 70 has a field strippable firing pin that at the push of a button can be simply removed for inspection to insure that no ice or debris has accumulated to ruin that special shot.
Sparsely populated and coal-rich, New Mexico's San Juan Basin awaits a boom as miners move in to tap 25,000 leased acres of strippable coal.
One of three Airbus A350-1000 flight-test aircraft has been painted in the Airbus livery with a selectively strippable system by PPG that shortens repaint cycle time using DESOTHANE HD 9008 basecoat-clearcoat for high-intensity, long-lasting color.
Also qualified is the basecoat-clearcoat selectively strippable system with chromate-free F565 intermediate coat applied over the primer that facilitates repainting without removal of the primer.
Lubricants, maintenance kits, punch and die sets, hot melt strippable protective coatings, threaded rods, layout fluids, markers, layout fluid removers, bearing and gear high spot locators, hand cleaner towels, hose benders and wires are also available.