A strap is a straddle tilted bullish: two long calls and one long put at the same strike. It profits from a large move in either direction, but earns more if the stock rises than if it falls.
Open the Strap calculator →Use a strap when you expect a large move and think the upside is more likely or larger — for instance ahead of a catalyst with bullish skew. It is a more aggressive, more expensive cousin of the long straddle.
It needs a sizeable move to overcome the cost of three options, so it is best when implied volatility is reasonable and a real catalyst is near.
On a rise, the two calls give double the upside of a plain straddle. On a fall, the single put still profits, just less than a straddle would. Either way the maximum loss is the premium, reached if the stock pins the strike.
There are two breakevens — a closer one above and a wider one below — reflecting the bullish weighting of the position.
Use the free OptionProfit Strap calculator to load a live option chain, build the trade, and instantly see the payoff chart, breakevens, probability of profit, Greeks and a Monte Carlo simulation of outcomes.
A straddle is one call and one put; a strap adds a second call, so it profits more from an up-move while still benefiting from a down-move.
If the stock barely moves and finishes near the strike at expiration — then all three options decay and you lose the premium paid.
Yes — every leg is long, so the most you can lose is the total premium you paid to open it.
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