Expand model tag support: add GLM-5.1, simplify Anthropic IDs, scan tags anywhere in message
- Flink update_bars debouncing - update_bars subscription idempotency bugfix - Price decimal correction bugfix of previous commit - Add GLM-5.1 model tag alongside renamed GLM-5 - Use short Anthropic model IDs (sonnet/haiku/opus) instead of full version strings - Allow @tags anywhere in message content, not just at start - Return hasOtherContent flag instead of trimmed rest string - Only trigger greeting stream when tag has no other content - Update workspace knowledge base references to platform/workspace and platform/shapes - Hierarchical knowledge base catalog - 151 Trading Strategies knowledge base articles - Shapes knowledge base article - MutateShapes tool instead of workspace patch
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gateway/knowledge/trading/strategies/options/strap.md
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description: "A bullish volatility strategy buying two ATM calls and one ATM put at strike K, profiting more from an upward move than a downward move of equal magnitude."
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tags: [options, volatility, bullish, strap]
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---
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# Strap
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**Section**: 2.34 | **Asset Class**: Options | **Type**: Volatility
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## Overview
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The strap is a volatility strategy consisting of a long position in two ATM call options and a long position in one ATM put option with strike K. This is a net debit trade. The trader's outlook is bullish (skewed toward upside). This is a capital gain strategy that profits from a large move in either direction but gains more from an upward move.
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## Construction
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- Buy 2 ATM call options at strike K
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- Buy 1 ATM put option at strike K, same expiry
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Net debit: D
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## Payoff Profile
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f_T = 2 × (S_T - K)+ + (K - S_T)+ - D
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- Upper breakeven: S*_up = K + D/2
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- Lower breakeven: S*_down = K - D
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- Max profit: P_max = unlimited (especially strong on upside due to 2 calls)
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- Max loss: L_max = D (if S_T = K at expiry)
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## Key Conditions / Signals
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- Bullish but uncertain of direction; expects a large move with upside bias
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- Low implied volatility environment is ideal (cheaper debit to enter)
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- The upper breakeven (D/2 above K) is closer to K than the lower breakeven (D below K)
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## Notes
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The strap is a modified straddle with bullish skew: two calls vs. one put. The upside potential is doubled relative to the downside (per unit of move). Maximum loss is capped at the net debit D.
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