a) Market is expected to take volatile move but its direction is not clear
        b) Farther the exercise price from strike price more will be profit
        c) Unlimited profit and limited loss 

When an investor expects the prices at the time of expiry of contract to remain outside a range of prices, he may enter into the Strips strategy, which is created by selling two calls and a put of same strike price. This strike price is the level from which he expects the prices to move farther.

Let us take an example to understand this in detail- an investor takes following positions on 27^th May 2005 when Nifty Spot was Rs.2070.

Here he buys two Nifty Calls and one Nifty Put of the same Strike price of Rs.2050 for which he pays a net amount of Rs.132 as premium {Rs.98 (49*2) paid for two Long Call positions and Rs.34 paid for a Long Put position} to create the position.

His cash flow at different levels of Nifty closing on 30^th June05(last Thursday of the following month) are as follows:

Thus it is clear from above example that his profits will occur when the Index closes beyond a certain range (here it is Rs.1985 to Rs.2180), whereas in case of Index closing within this range, he will make loss.