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/strip.md
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gateway/knowledge/trading/strategies/options/strip.md
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description: "A bearish volatility strategy buying one ATM call and two ATM puts at strike K, profiting more from a downward move than an upward move of equal magnitude."
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tags: [options, volatility, bearish, strip]
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---
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# Strip
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**Section**: 2.35 | **Asset Class**: Options | **Type**: Volatility
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## Overview
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The strip is a volatility strategy consisting of a long position in one ATM call option and a long position in two ATM put options with strike K. This is a net debit trade. The trader's outlook is bearish (skewed toward downside). This is a capital gain strategy that profits from a large move in either direction but gains more from a downward move.
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## Construction
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- Buy 1 ATM call option at strike K
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- Buy 2 ATM put options at strike K, same expiry
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Net debit: D
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## Payoff Profile
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f_T = (S_T - K)+ + 2 × (K - S_T)+ - D
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- Upper breakeven: S*_up = K + D
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- Lower breakeven: S*_down = K - D/2
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- Max profit: P_max = unlimited (especially strong on downside due to 2 puts)
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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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- Bearish but uncertain of direction; expects a large move with downside bias
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- Low implied volatility environment is ideal (cheaper debit to enter)
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- The lower breakeven (D/2 below K) is closer to K than the upper breakeven (D above K)
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## Notes
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The strip is a modified straddle with bearish skew: two puts vs. one call. The downside potential is doubled relative to the upside (per unit of move). Maximum loss is capped at the net debit D.
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