The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

STRAP Definition & Legal Meaning

Definition & Citations:

When a firm is long on one put and two call options with equal strike prices creating a spread to make use of market volatility to secure unlimited profit potential with minimal risk. Refer to strip.

Disclaimer

This article contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.