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Long Put Strip


An option trading strategy which is constructed by buying from three and up to eight put options. In this strategy, the strike prices and expiration months need not be identical. However, both strikes and expiration months must be entered in ascending order. Put strips are used by investors expecting the market to be bearish (downside price pressures) in an environment of high volatility. The loss of the position is limited to the total premium paid.



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Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
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