Strip (Bearish Straddle)
A bet on a big move, but you think a drop is more likely. Shoot either way and you earn, but the profit builds twice as fast on the downside.
How the Strip works
Like a straddle, but the extra put makes a drop twice as profitable as a rally. It suits expecting a big move where the downside 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 with price below the Gamma Flip and red hedging pressure.
The Gamma Flip and hedging pressure are computed live in the GEX Terminal — Position Builder.
When to open, the Greeks and managing the position
Open it ahead of critical news, earnings or court rulings when a strong breakout is expected but the bias is bearish. Two long puts double the profit on a drop. Lower breakeven = strike − (debit / 2) — notably closer to price; upper = strike + debit.
Greeks: long vega, negative theta. Management: the main risk is a flat market and theta decay; if the big move hasn't come within days, close early to salvage remaining time value.
FAQ
The extra put makes it more profitable on a drop — a "bearish straddle".
Capped at the total premium paid.
Build the Strip 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.