A call strip which involves short positions. The short call strip can be constructed with a number of contracts (call contracts), i.e., the short calls, ranging from three to eight contracts at most, while the strike prices of respective contracts must be progressive: S1> S2 > S3 > S4, …, and all with the same expiration date.

A short call strip is beneficial for investors who expect or bet on low volatility combined with bearish market prices. The profit is limited to the total amount of the premiums (premia) received (by the call’s seller), while loss could be unlimited if expectations turned out to be wrong.

The breakeven point is defined at a level equal to the total premiums minus the strike price of the first contract (S1).