Strap (Bullish Straddle)
The same, but tilted to the upside: a move either way pays off, but you earn twice as fast on the way up.
How the Strap works
Like a straddle, but the extra call makes a rally twice as profitable as a drop. It suits expecting a big move where the upside is more likely. Its enemy is a flat market and falling IV.
Placing the strike at GEX levels
Put the strike at the current price / Gamma Flip. It suits a negative-GEX regime (amplified moves), especially on a breakout above the Gamma Flip. The upside target is the Call Wall.
The Gamma Flip and Call Wall are computed live in the GEX Terminal — Position Builder.
When to open, the Greeks and managing the position
Open it ahead of major events (product launches, trial results) when a strong jump with a bullish bias is expected but downside protection is needed. Two long calls double the profit on a rally. Upper breakeven = strike + (debit / 2) — closer to price; lower = strike − debit.
Greeks: long vega, negative theta. Management: like all debit volatility strategies, theta risk in a flat market is high — take profit on the very first sharp impulse rather than waiting for expiry.
FAQ
The extra call makes it more profitable on a rally — a "bullish straddle".
Capped at the total premium paid.
Build the Strap on live BTC and ETH quotes in the Position Builder.
Open the Position BuilderRelated strategies
Information is for educational purposes only and does not constitute investment advice. Options trading carries high risk.