A strip is a straddle tilted bearish: one long call and two long puts at the same strike. It profits from a large move in either direction, but earns more if the stock falls than if it rises.
Open the Strip calculator →Use a strip when you expect a large move and think the downside is more likely or larger — for example into a risk event where a drop would be sharper than a rally. It is the bearish mirror of the strap.
Like the strap, it needs a real move to pay for three options, so it suits situations with a near-term catalyst and reasonable implied volatility.
On a fall, the two puts give double the downside payoff of a plain straddle. On a rise, the single call still profits, just less. The maximum loss is the premium, reached if the stock pins the strike.
There are two breakevens — a closer one below and a wider one above — reflecting the bearish weighting.
Use the free OptionProfit Strip 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 strip adds a second put, so it profits more from a down-move while still benefiting from an up-move.
If the stock barely moves and finishes near the strike at expiration, all three options decay and you lose the premium paid.
Yes — every leg is long, so the maximum loss is the total premium paid to open the position.
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