2:1 strip
ATMBuy one call and two puts (as shown) for a moderate bearish tilt.
Key difference: Standard weighting that balances cost against the bearish skew.
Best for: Traders who lean bearish but still want meaningful upside participation.
Volatility strategy · Advanced
Strip
Market outlook Large move, bearish tilt
One long call and two long puts emphasize downside.
Semi-ProHigh risk30–60 days
Maximum profit—
Maximum loss—
Reward / risk—
Break-even price—
Position analyticsEarliest-expiry P&L
Valuation curveCurrent spot
Stress tableOutcomes at the valuation day
Each row reprices every live leg independently. Entry premiums stay fixed.
| Underlying price | Move | Profit / loss |
|---|
Current riskBlack–Scholes position Greeks · day 0
Dollar-scaled for each leg's quantity, multiplier, expiry, and IV. Theta is per day; vega and rho are per one percentage-point move.
Delta—
Gamma—
Theta / day—
Vega / IV pt—
Rho / rate pt—
| Leg | Delta | Theta/day | Vega |
|---|
Strike configurations
Strip variations
3:1 strip
ATMBuy one call and three puts for a stronger bearish skew.
Key difference: More pronounced bearish lean and higher cost, with even less upside participation per dollar spent.
Best for: Traders with high conviction that a large move is more likely to be a decline.
Common questions
Strip FAQ
How is a strip different from a straddle?
Comparisons
A straddle weighs the call and put equally; a strip adds extra puts, so it profits more from a decline than an equivalent rally while still retaining some upside participation.
When would I use a strip instead of just buying puts?
When to Use
A strip retains some upside exposure via the single long call, which is useful if you're mainly bearish but want to avoid being caught completely wrong-footed by a surprise rally.
Why is this considered an advanced strategy?
Setup
It combines three option legs with an intentionally asymmetric weighting, requiring a more nuanced understanding of breakeven math and theta exposure than a standard two-leg straddle.
What happens if the stock stays flat?
Greeks & Risk
All three legs decay simultaneously since none gain meaningful intrinsic value, making this one of the more expensive ways to be wrong about direction if no move occurs.
Deep dive
Read the full Strip guide
Detailed explanations, management techniques, and real-world scenarios
Scenario Lab
Test price, time, and IV
Explore how this position changes before expiration
Quick reference
Strategy FAQ
Quick answers about when to use, capital needed, and key risks
Profit and loss
Options profit calculator
Compare max profit, max loss and break-even across common strategies
Custom calculator
Build a multi-leg options strategy
Combine calls, puts, stock, quantities and different expirations
Risk sensitivity
Calculate options Greeks
Inspect Delta, Gamma, Theta, Vega and Rho
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Model boundary
This calculator uses exact intrinsic value at a leg’s expiration and Black–Scholes theoretical value while that leg remains open. Position Greeks use the same visible legs and model assumptions. Results exclude fees, tax, liquidity, margin, early exercise and assignment behavior. Educational illustration only—not financial advice.