Strap

A long position in two call options and one put option with the same exercise price.

Similar financial terms

Bootstrap transaction
A highly leveraged transaction (HLT)

Bootstrapped
Develop by yourself without outside support

Bootstrapping
In business, bootstrapping refers to the process of financing a business by internally generated cash flow as opposed to "kickstarting" the company with external investment capital. It means keeping salaries and expenses down while generating customer sales to fuel the growth of the venture.

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Did you know?

Target surplus (or Tied Surplus)

The capital that must remain in a life company in order to support the business already on the books. Target surplus is an amount held over and above the reserves and is needed due to the uncertain nature of the level and timing of future insurance claims. This capital may not be used for dividend payouts to shareholders.


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