strap means: This is a simple strategy for trading that involves purchasing a series of options (two calls and one put) with the same expiration and strike prices. Because it is more specific than the straddle and has a lower risk, unlimited profit nature, the strap is very popular. A strap is considered to be at risk if the equity price expires on the same date as when it was purchased. The loss in this instance is the amount of the set with three options. The strategy will recover at most some cost of buying the options if the price changes. See: Strip, Straddle. (in Stock Market Dictionary)

What else does strap mean?

  • A narrow, long strip of flexible material like leather. (in Merlin Dictionary)
  • This strip is equipped with a fastener such as a buckle for binding and securing items. (in Merlin Dictionary)
  • Useful for holding objects in place or fastening them together with a thin metal band or plastic band. (in Merlin Dictionary)
  • For grasping the hand with your hands, a narrow band is formed into a loop. (in Merlin Dictionary)
  • The razor strop. (in Merlin Dictionary)
  • Flogging is a process that involves the use of a strip of leather. (in Merlin Dictionary)
  • A strap is used to fasten the item or make it secure. (in Merlin Dictionary)
  • A strap is the best tool to beat the competition. (in Merlin Dictionary)
  • For example, to sharpen a razor. (in Merlin Dictionary)