Strategies / Expert · Other
Strap
Buy two at-the-money calls and one at-the-money put. A straddle tilted bullish: bigger payoff on a rally.
When to use
When you expect a big move and lean bullish, so the extra call doubles the upside payoff.
Risks
Three premiums decay at once; a quiet stock loses the full debit, and a fall only pays on one put.
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