A strategy used by option traders that involves taking a long position in a call option and simultaneously selling two put options with the same strike price and expiration date. A forex option trader might enter into an at the money strip strategy on the EUR/USD currency pair if they thought its exchange rate would increase substantially, perhaps with an accompanying decline in volatility during the option's lifetime.
Browse by Subjects
See All Related Terms »
rate of interest
government economic indicators
American Psychological Association (APA):
Chicago Manual of Style (CMS):
Modern Language Association (MLA):