A Strap straddle is an options strategy comprised of buying both an ATM put option and double the ATM call option with the same strike price and expiration date. It is used when the trader believes the underlying asset will move significantly higher or lower over the lives of the options contracts. The maximum loss is the amount of premium collected by buying the options. The maximum profit can be unlimited if the stock moves sharply in either direction. It is a bearish version of the normal straddle option strategy.

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