Strap
Strap is an option strategy when investor holds long positions in one put and two call options, both with same underlying securities, maturity dates and strike prices.
Investor will collect large profit in the case of large future upward price movement of the underlying asset. However, if the prediction was wrong and the underlying security enters the downward movement, the investor should be covered with the one put option.
This option contract is generally less expensive than the three individual options.
Strap is also known as "triple option."
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