• Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint

4.4. Strap

ProficiencyDirectionVolatilityAsset LegsMax RiskMax RewardStrategy Type
+
    +   
ExpertBullishHigh• One Long PutCappedUncappedCapital Gain
  • Two Long Calls   


4.4.1. Description

The Strap is a simple adjustment to the Straddle to make it more biased to the upside. In buying a second call, the strategy retains its preference for high volatility but now with a more bullish slant.


PREVIEW

                                                                          

Not a subscriber?

Start A Free Trial


  
  • Creative Edge
  • Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint