An options strategy created by being long in one put and two call options, all with the exact same strike price, maturity and underlying asset. Also referred to as a "triple option".


A strap option is used when a trader believes that the future price movement of the underlying security will be large and more likely up than down. By adding two call options the trader has a large gain if he or she is right about the large upward movement. But if the forecast is wrong and the price has a large reversal, the trader is protected by the put option.

  1. Call

    1. The period of time between the opening and closing of some ...
  2. Strike Price

    The price at which a specific derivative contract can be exercised. ...
  3. Straddle

    An options strategy with which the investor holds a position ...
  4. Strangle

    An options strategy where the investor holds a position in both ...
  5. Put

    An option contract giving the owner the right, but not the obligation, ...
  6. Strip

    1. For bonds, the process of removing coupons from a bond and ...
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