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A Long Straddle with a bullish tilt: buy two calls and one put at the same strike, instead of one of each. It still profits from a big move in either direction, but rewards an upward move more than an equal-sized downward one.

A Strap combines buying two calls and buying one put, all at the same strike and expiry. It's built from the same two option types as a Long Straddle, just in an unequal 2:1 ratio favoring the calls — reflecting a view that a big move is more likely to be upward than downward, without abandoning protection if it goes the other way.

The extra call is what creates the bullish tilt — above the strike, profit grows twice as fast per point as it would with a plain Long Straddle, while below the strike, the single put behaves exactly as it would in an ordinary straddle.

The shape is an asymmetric V, tilted toward the upside:

1. Near the strike — maximum loss, the full debit paid, since neither leg has meaningful value yet.
2. Below the strike — profit grows at the same rate a plain Long Straddle's put side would, one point of profit per point the underlying falls, once past the breakeven.
3. Above the strike — profit grows twice as fast, two points of profit per point the underlying rises, once past the (closer) upper breakeven.

This asymmetry is why the upper breakeven sits closer to the strike than the lower one — it takes a smaller upward move to start profiting than an equivalent downward move would need.

A Strap fits a view that a large move is likely, and more likely to be upward than downward — a directional lean layered onto a volatility bet, rather than a purely neutral "big move, either way" view a plain straddle expresses. It costs more than a plain Long Straddle (an extra call's premium), reflecting the added upside leverage.

Suppose Nifty is trading at 24,000 with a weekly expiry coming up, and lot size is 65. You expect a big move, more likely up than down.

1. Confirm the setup. You expect a significant move in Nifty, with more conviction on the upside.
2. Buy 2 calls at the 24,000 strike, paying a premium of 145 each — 290 total.
3. Buy 1 put at the same 24,000 strike, paying a premium of 140.
4. Calculate the net debit: 290 + 140 = 430 points, or ₹27,950 at this lot size — your maximum possible loss.
5. Calculate the breakevens: 24,000 − 430 = 23,570 on the downside, and 24,000 + (430 ÷ 2) = 24,215 on the upside — notice the upper one is much closer.
6. Hold the position while waiting to see how large a move actually happens.
7. See how it resolves at expiry:
   • Nifty finishes at 24,000 → both legs near worthless, you lose close to the full ₹27,950 debit.
   • Nifty finishes at 24,215 → you exactly break even, needing a much smaller move than on the downside.
   • Nifty finishes at 25,000 → profit is 2 × (25,000−24,000) − the put's loss, growing fast on the upside.

Quick reference for the same trade:

Based on the worked example above. Notice the line climbs more steeply on the right side than it falls on the left — that asymmetry is the entire point of a Strap. Move the cursor over the chart to see profit/loss at any price.

• Costs more than a plain Long Straddle, reflecting the extra call — the directional lean isn't free.
• Time decay works against this position, same as any long options structure.
• If the big move happens downward instead of up, you're still exposed roughly like a plain straddle would be — the extra call doesn't hurt on the downside, but it also didn't help pay for that leg.
• Index options on NSE are typically European-style and cash-settled — settled automatically at expiry.