STRIP	STRAP
About Strategy	Strip Option Strategy Strip Strategy is the opposite of Strap Strategy. When a trader is bearish on the market and bullish on volatility then he will implement this strategy by buying two ATM Put Options & one ATM Call Option, of the same strike price, expiry date & underlying asset. If the prices move downwards then this strategy will make more profits compared to short straddle because of the Read more..	Strap Option Strategy  Strap Strategy is similar to Long Straddle, the only difference is the quantity traded. A trader will buy two Call Options and one Put Options. In this strategy, a trader is very bullish on the market and volatility on upside but wants to hedge himself in case the stock doesn’t perform as per his expectations. This strategy will make more profits compared to long straddle sin .. Read more..

STRIP Vs STRAP - Details

	STRIP	STRAP
Market View	Neutral	Neutral
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	3	3
Strategy Level	Beginners	Beginners
Reward Profile	Unlimited	Profit Achieved When Price of Underlying > Strike Price of Calls/Puts + (Net Premium Paid/2) OR Price of Underlying < Strike Price of Calls/Puts - Net Premium Paid
Risk Profile	Limited	Max Loss Occurs When Price of Underlying = Strike Price of Calls/Puts
Breakeven Point	Upper Breakeven Point = Strike Price of Calls/Puts + Net Premium Paid, Lower Breakeven Point = Strike Price of Calls/Puts - (Net Premium Paid/2)	Strike Price of Calls/Puts + (Net Premium Paid/2)

STRIP Vs STRAP - When & How to use ?

	STRIP	STRAP
Market View	Neutral	Neutral
When to use?	When a trader is bearish on the market and bullish on volatility then he will implement this strategy.	This strategy is used when the investor is bullish on the stock and expects volatility in the near future.
Action	Buy 1 ATM Call, Buy 2 ATM Puts	Buy 2 ATM Call Option, Buy 1 ATM Put Option
Breakeven Point	Upper Breakeven Point = Strike Price of Calls/Puts + Net Premium Paid, Lower Breakeven Point = Strike Price of Calls/Puts - (Net Premium Paid/2)	Strike Price of Calls/Puts + (Net Premium Paid/2)

STRIP Vs STRAP - Risk & Reward

	STRIP	STRAP
Maximum Profit Scenario	Price of Underlying - Strike Price of Calls - Net Premium Paid OR 2 x (Strike Price of Puts - Price of Underlying) - Net Premium Paid	UNLIMITED
Maximum Loss Scenario	Net Premium Paid + Commissions Paid	Net Premium Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

STRIP Vs STRAP - Strategy Pros & Cons

	STRIP	STRAP
Similar Strategies	Strap, Short Put Ladder	Strip, Short Put Ladder, Short Call Ladder
Disadvantage	Expensive., The share price must change significantly to generate profit., High Bid/Offer spread can have a negative influence on the position.	• To generate profit, there should be significant change in share price. • Expensive strategy.
Advantages	Profit is generated when the share price changes in any direction., Limited loss., The profit is potentially unlimited when share prices are moving.	• Limited loss. • If share prices are moving then traders can book unlimited profit. • A trader can still book profit if the underlying falls substantially.