Financial Glossary: Strap


en			ru			jp

Strap

Strap

An options strategy created by being Long in one put and two call options, all with the exact same Strike Price.

Also known as a "triple Option", is used when a trader thinks 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.

Posted by Privatebanking.com

Back

Privatebanking.com

Get the attention you always wanted and promote your corporate image and standing by benefiting from our state of the art interactive web presence.

Ascent Limited

Experience The Difference. Ascent Limited provides first class wealth management and family office services. Our private banking team, assembled from a group of highly experienced banking professionals, will provide financial advice tailored to your individual requirements and keep your portfolio in tune with the latest market developments and opportunities.

©	Copyright by PRIVATE BANKING.COM 2002- - All rights reserved.