The heat strips are an electric heating element; very similar to the heating element in an electric oven; that come on to help a heat pump produce heat even when the temperature gets really cold outside. The difference is, you don’t generally manually turn them on (see below). It’s worth noting that only heat pumps have heat strips.
What are strips and how do they work?
How They Work. As is stated in the acronym, STRIPS are simply bonds that have had the interest payments stripped away and sold separately, while the principal amount is still paid out at maturity. The U.S. government does not issue STRIPS directly to investors in the same manner as treasury securities or savings bonds.
What is stripping in options?
In the context of bonds, stripping is typically done by a brokerage or other financial institution. In options, a strip is a strategy created by being long in one call position and two put options, all with the exact same strike price. A strip is also referred to as a stripped bond or z-bond.
What is a strips bond?
As is stated in the acronym, STRIPS are simply bonds that have had the interest payments stripped away and sold separately, while the principal amount is still paid out at maturity . The U.S. government does not issue STRIPS directly to investors in the same manner as treasury securities or savings bonds.
