a) Market is expected to take volatile move but its direction is not clear
        b) Unlimited profit and limited loss 

When an investor expects the prices at the time of expiry of contract to remain outside a level of prices, he may enter into the Strips strategy, which is created by buying a call and two puts 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 one Nifty Call and two Nifty Puts of the same Strike price of Rs.2000 for which he pays a net amount of Rs.120 as premium {Rs.84 paid for Long Call position and Rs.36 (18*2) paid for two 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 profit will occur when Index closes beyond a certain range (here it is Rs.1940 to Rs.2120), whereas in case of Index closing within this range he will make loss.