strapStrategy {bullishTrader} | R Documentation |

## Calculates Profit and Loss (PnL) per share (or unit of the underlying) and Breakeven point at expiration for Strap Strategy and draws its graph in the Plots tab.

### Description

This is a volatility strategy consisting of a long position in two ATM call options, and a long position in an ATM put option with a strike price K. This is a net debit trade. The trader or investor has bullish outlook (Kakushadze & Serur, 2018) .

### Usage

```
strapStrategy(
ST,
X,
C1,
C2,
P1,
hl = 0,
hu = 1.5,
xlab = "Spot Price ($) on Expiration",
ylab = "Profit / Loss [ PnL ] at Expiration ($)",
main = "Strap Strategy ",
sub = "bullishTrader / MaheshP Kumar"
)
```

### Arguments

`ST` |
Spot Price at time T. |

`X` |
Strike Price or eXercise price. |

`C1` |
Call Premium paid on bought first call. |

`C2` |
Call Premium paid on bought second call. |

`P1` |
Put Premium paid on bought Put. |

`hl` |
lower bound value for setting lower limit of X axis displaying spot price. |

`hu` |
upper bound value for setting upper limit of X axis displaying spot price. |

`xlab` |
X axis label. |

`ylab` |
Y axis label. |

`main` |
Title of the Graph. |

`sub` |
Subtitle of the Graph. |

### Details

This method is developed, and the given examples are created, to compute per share Profit and Loss at expiration and also the Breakeven (BE) point for a Strap Strategy and draws its graph in the Plots tab.

### Value

returns a profit and loss graph of Strap Strategy.

### Author(s)

MaheshP Kumar, maheshparamjitkumar@gmail.com

### References

Cohen, G. (2015). The Bible of Options Strategies (2nd ed.). Pearson Technology Group.

Kakushadze, Z., & Serur, J. A. (2018, August 17). 151 Trading Strategies. Palgrave Macmillan. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3247865

### Examples

```
strapStrategy(25,25,2.40,2.40,1.70)
strapStrategy(40,40,3,3,2,hl=0.7,hu=1.2)
strapStrategy(1000,1010,18,18,10,hl=0.955,hu=1.055)
```

*bullishTrader*version 1.0.1 Index]