Strap
Description
A long straddle weighted toward calls: two calls and one put at the same strike, for a trader who expects a big move but leans bullish.
Setup
- Buy two calls at the money.
- Buy one put at the same strike and expiry.
Context
Used ahead of an uncertain event when the trader wants straddle-like protection in both directions but assigns a higher probability to a rally.
Risk Profile
Maximum loss is the combined premium paid, realized if the underlying finishes exactly at the strike. Gain is unlimited in either direction, but grows faster on the upside.
Pros
- Profits from a move in either direction, with extra payoff on a rally.
- Defined, capped maximum loss.
Cons
- Costlier than a plain long straddle due to the extra call.
- Still loses value quickly if the underlying stays flat.
Effect of Time
Time decay works against the position every day the underlying fails to move.
Effect of Volatility
A rise in implied volatility benefits all three legs.
Look-Alike Strategies
Live Structure
| Position | Right | Ratio | Strike | Expiry | Premium | Fill Price | Est. Fee |
|---|---|---|---|---|---|---|---|
| Long | Call | 2 | $84500.0000 | 24 Sep 2026 | $262.0186 | $287.3753 | $50.7133 |
| Long | Put | 1 | $84500.0000 | 24 Sep 2026 | $228.2092 | $253.5658 | $25.3566 |
Estimated Cost to Assemble
An estimate of what entering this structure right now would really cost: filling every leg by crossing the spread (the ask when buying, the bid when selling) instead of at the mid-price, plus an estimated exchange fee. Real fees and fills can differ from this estimate.
Payoff & Greeks vs. Underlying Price
The Greeks curves are a Black-Scholes model using each leg's current implied volatility, holding time to expiry fixed -- not live exchange data at every price, which only exists at the current price (dashed line).
Payoff at Expiration
This structure's value and profit/loss at expiration, at a handful of specific prices: every leg's strike, every breakeven, the current spot, and the chart's own range.
| Underlying Price | Value at Expiration | Profit / Loss | Return on Cost |
|---|---|---|---|
| $67600.0000 | $16900.0000 | $16147.7535 | +2146.6% |
| $83747.7535 breakeven | $752.2465 | $0.0000 | +0.0% |
| $84500.0000 current | $0.0000 | -$752.2465 | -100.0% |
| $84876.1232 breakeven | $752.2465 | $0.0000 | +0.0% |
| $101400.0000 | $33800.0000 | $33047.7535 | +4393.2% |