STRAP	STRAP
About Strategy	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..	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..

STRAP Vs STRAP - Details

	STRAP	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	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	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	Max Loss Occurs When Price of Underlying = Strike Price of Calls/Puts	Max Loss Occurs When Price of Underlying = Strike Price of Calls/Puts
Breakeven Point	Strike Price of Calls/Puts + (Net Premium Paid/2)	Strike Price of Calls/Puts + (Net Premium Paid/2)

STRAP Vs STRAP - When & How to use ?

	STRAP	STRAP
Market View	Neutral	Neutral
When to use?	This strategy is used when the investor is bullish on the stock and expects volatility in the near future.	This strategy is used when the investor is bullish on the stock and expects volatility in the near future.
Action	Buy 2 ATM Call Option, Buy 1 ATM Put Option	Buy 2 ATM Call Option, Buy 1 ATM Put Option
Breakeven Point	Strike Price of Calls/Puts + (Net Premium Paid/2)	Strike Price of Calls/Puts + (Net Premium Paid/2)

STRAP Vs STRAP - Risk & Reward

	STRAP	STRAP
Maximum Profit Scenario	UNLIMITED	UNLIMITED
Maximum Loss Scenario	Net Premium Paid	Net Premium Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

STRAP Vs STRAP - Strategy Pros & Cons

	STRAP	STRAP
Similar Strategies	Strip, Short Put Ladder, Short Call Ladder	Strip, Short Put Ladder, Short Call Ladder
Disadvantage	• To generate profit, there should be significant change in share price. • Expensive strategy.	• To generate profit, there should be significant change in share price. • Expensive strategy.
Advantages	• Limited loss. • If share prices are moving then traders can book unlimited profit. • A trader can still book profit if the underlying falls substantially.	• Limited loss. • If share prices are moving then traders can book unlimited profit. • A trader can still book profit if the underlying falls substantially.