Strap

Strap
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.


Investment dictionary. . 2012.

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Synonyms:
, (with a strap) / , , , (with a strap), / , , , , (on a strap)


Look at other dictionaries:

  • Strap — Strap, n. [OE. strope, AS. stropp, L. stroppus, struppus, perhaps fr. Gr. ? a band or cord, fr. ? to twist, to turn (cf. {Strophe}). Cf. {Strop} a strap, a piece of rope.] 1. A long, narrow, pliable strip of leather, cloth, or the like;… …   The Collaborative International Dictionary of English

  • strap-on — strapˈ on adjective Able to be held in place by a strap or straps • • • Main Entry: ↑strap * * * strap on «STRAP ON, N», adjective, noun. –adj. attached to a space vehicle or engine for additional thrust: »The vehicle seen on television appeared… …   Useful english dictionary

  • Strap — Strap, v. t. [imp. & p. p. {Strapped}; p. pr. & vb. n. {Strapping}.] 1. To beat or chastise with a strap. [1913 Webster] 2. To fasten or bind with a strap. Cowper. [1913 Webster] 3. To sharpen by rubbing on a strap, or strop; as, to strap a razor …   The Collaborative International Dictionary of English

  • Strap-on — can be used to describe more than one thing:* Strap on booster, a rocket motor which is used and then discarded * Strap on dildo, a sex toy * Strap on keyboard or keytar , a keyboard instrument or MIDI controller that can be worn on a strap like… …   Wikipedia

  • strap — ► NOUN 1) a strip of flexible material used for fastening, securing, carrying, or holding on to. 2) a strip of metal, often hinged, used for fastening or securing. 3) (the strap) punishment by beating with a leather strap. ► VERB (strapped,… …   English terms dictionary

  • strap — [strap] n. [dial. form of STROP] 1. a narrow strip or band of leather or other flexible material, often with a buckle or similar fastener at one end, for binding or securing things 2. any flat, narrow piece, as of metal, used as a fastening 3.… …   English World dictionary

  • Strap It On — Álbum de Helmet Publicación 1990 (reeditado en noviembre de 1991) Grabación 1990 Género(s) Post hardcore, Noise rock Duración …   Wikipedia Español

  • strap — s.m.inv. ES ingl. {{wmetafile0}} TS fin. nel linguaggio di borsa, tipo di contratto a premio per cui il compratore, alla scadenza convenuta, si riserva la facoltà di vendere una determinata quantità di titoli oppure di acquistarne il doppio… …   Dizionario italiano

  • strap — index fetter, handcuff Burton s Legal Thesaurus. William C. Burton. 2006 …   Law dictionary

  • strap — [n] long piece of material band, belt, harness, leash, strop, switch, thong, tie, whip; concepts 471,475 …   New thesaurus

  • strap|pa|do — «struh PAY doh, PAH », noun, plural does. 1. a form of human torture in which the victim was raised by a rope and suddenly let fall the length of the rope. 2. the mechanism for doing this. ╂[alteration of Middle French estrapade < Italian… …   Useful english dictionary

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