Strip
Expecting a large move with a bias toward the downside — want movement in either direction but double exposure if the stock falls
Risk Profile at a Glance
How to Construct the Strip
- 1.Buy 1 ATM call
- 2.Buy 2 ATM puts
- 3.Same strike and expiration
- 4.Net debit = cost of all three options
Understanding the Strip
The strip is the bearish counterpart to the strap. You buy 1 call and 2 puts at the same at-the-money strike and expiration, creating asymmetric exposure with twice the sensitivity to a decline versus a rally. If the stock falls, both puts gain value — profit is effectively doubled versus a standard straddle. If the stock rallies, only the single call gains.
Maximum loss is the total premium paid; maximum loss on a sharp decline is limited only by the stock going to zero (substantial profit potential). The strip is used when expecting a large binary event with a bearish directional lean. Like the strap, it is more expensive than a simple straddle due to the extra put. The extra cost is justified when you have high conviction about both the magnitude of movement and its direction (bearish bias).
Ahead of a negative catalyst — regulatory action, a major miss, or a market crisis — the strip captures the directional sensitivity while keeping some upside exposure. The EdgeOS bear count trigger approaching from a high-count bull exhaustion is a potential strip setup signal..
When to Use It — EdgeOS Signal Integration
- ✓Ideal when SCTR < 4 and EdgeOS bear count = 1 (fresh bear trigger)
- ✓Extension score at or above 0.8 with stock near the upper ATR level
- ✓Confirmed or fluid bearish trend — EMA alignment supports the short side
Today's Strip Candidates
Updated Oct 12, 2026 · refreshes every 30 minStocks currently showing bearish EdgeOS signals that match Strip entry conditions. SCTR > 9 (bullish breadth), extension Tight–Mod (room to run), fresh bull count 1–3.
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Frequently Asked Questions
What is the Strip options strategy?
The strip is the bearish counterpart to the strap. You buy 1 call and 2 puts at the same at-the-money strike and expiration, creating asymmetric exposure with twice the sensitivity to a decline versus a rally.
When should I use the Strip?
Expecting a large move with a bias toward the downside — want movement in either direction but double exposure if the stock falls
What is the maximum loss on the Strip?
The maximum loss is fully defined at entry: the net debit paid (for debit strategies) or the spread width minus the credit received (for credit spreads). You can never lose more than this amount.
How does the Strip compare to similar strategies?
The Strip is a bearish debit strategy. Compared to the Long Straddle (directional, debit), the Strip has limited max risk and limited max reward. Your choice depends on your directional bias, IV environment, and risk tolerance. The TraderValue strategy comparison tool lets you see the exact payoff differences side by side.
What stocks are good Strip candidates today?
As of Oct 12, 2026, stocks with bearish EdgeOS signals matching Strip conditions include: VPL (SCTR 3.9, bear b3, Ext extension); DEM (SCTR 3.9, bear b3, Ext extension); DWSH (SCTR 3.9, bear b2, Ext extension). These are screened live from 3,000+ symbols and refresh every 30 minutes during market hours. See winstockoptions.com/scans for the full live list.