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Big move, either direction

Strip Calculator

By Dennis Bosmans · Updated June 2026 · 2 min read · Risk disclaimer

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 →

Key characteristics

When to use a strip

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.

How the payoff works

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.

Worked example. Stock at $100. Buy one $100 call for $3.00 and two $100 puts for $2.80 each — a total cost of $8.60 ($860), the maximum loss. A drop to $88 is worth about $2,400 from the puts; a rally to $110 is worth about $1,000 from the call.

Calculate it live

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.

Key takeaways

Frequently asked questions

How is a strip different from a straddle?

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.

When does a strip lose money?

If the stock barely moves and finishes near the strike at expiration, all three options decay and you lose the premium paid.

Is a strip defined risk?

Yes — every leg is long, so the maximum loss is the total premium paid to open the position.

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