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 ?
Many stripped bonds are callable at the discretion of the issuer.
Space--Is there room behind the molding area to store molds waiting to be stripped? A mixer operator should never have to wait for the binder to set at mold stripping.
By showing us the world through the eyes of children, animals, and insects, comic strips like "Peanuts," "Calvin and Hobbes," "Bloom County," and "The Far Side" give us a view of our own humanity stripped of the armor and makeup so many emperors and other grown-ups usually wear in public.