Stocks Options Trading

A simple trading system based on the advanced technical analysis

options trading HOME ETFs Signals Quotes Calendar History FAQ Contact Us Log In trading system



Most Used Options Terms:
 - Call Options
 - Change
 - Cover
 - Covered Options
 - Delta
 - Exchange
 - Exercise
 - Index
 - Long
 - Market
 - Opening
 - Option
 - Order
 - Position
 - Price
 - Profit
 - Put Options
 - Return
 - Risk
 - SEC
 - Short
 - Spread
 - Stock
 - Strategy
trading strategy  

Options Glossary

Description: Options Glossary, Strategy, Equivalent strategy,Married Put Strategy,Neutral strategy,Treasury Bill/Option Strategy,Spread Strategy,Ratio Strategy,Protected Strategy,Ninety-ten (90/10) Strategy



With respect to option investments, a preconceived, logical plan of position selection and follow-up action.

See Also:

Equivalent strategy: A strategy which has the same risk-reward profile as another strategy. For example, a long May 60-65 call vertical spread is equivalent to a short May 60-65 put vertical spread.

Married Put Strategy: The simultaneous purchase of stock and put options representing an equivalent number of shares when the position is designated at that time as a hedge. This is a limited risk strategy during the life of the puts because the stock can always be sold for at least the strike price of the purchased puts.

Neutral strategy: Describing an opinion that is neither bearish nor bullish. Neutral option strategies are generally designed to perform best if there is little or no net change in the price of the underlying stock or index. This is an option strategy (or stock and option position) expected to benefit from a neutral market outcome.

Treasury Bill/Option Strategy: (90/10 strategy) a method of investment in which one places approximately 90% of his funds in risk-free, interest-bearing assets such as Treasury bills, and buys options with the remainder of his assets.

Spread Strategy: Any option position having both long options and short options of the same type on the same underlying security.

Ratio Strategy: A strategy in which one has an unequal number of long securities and short securities. Normally, it implies a preponderance of short options over either long options or long stock.

Protected Strategy: A position that has limited risk. A protected short sale (short stock, long call) has limited risk, as does a protected straddle write (short straddle, long out-of-the-money combination).

Protected Strategy: A position that has limited risk. A protected short sale (short stock, long call) has limited risk, as does a protected straddle write (short straddle, long out-of-the-money combination).

ETFs Glossary: Exchange Traded Funds -|-|- Amex Etfs -|-|- Nasdaq Etfs -|-|- NYSE Etfs -|-|- LSE ETFs -|-|- Canadian Etfs

Labels: options glossary, strategy, equivalent strategy,married put strategy,neutral strategy,treasury bill/option strategy,spread strategy,ratio strategy,protected strategy,ninety-ten (90/10) strategy, stocks options trading, stock trading, stock options, stock, technical analysis, advanced technical analysis, options trading system, stock trading system, qqqq, qqqq stock, qqqq trading, trader, options trader

Index Quotes

S&P 500 Quotes
Nasdaq 100 Quotes
DJI Quotes
S&P Financials Quotes
Russell 2000 Quotes

ETFs Quotes

SPY Quotes
QQQ Quotes
DIA Quotes
XLF Quotes
IWM Quotes

ETFs Glossary

Stock ETFs
Bond ETFs
Commodity ETFs
U.S. Exchanges
Global Exchanges

SOT Star
Trading System - Signals - Options Tutorial - Index Trading - Technical Analysis - Glossary - ETFs - Quotes

Financial and Investments Directories: Banking - Brokerage Services - Currencies Trading - ETFs Trading - Mortgages and Loans - Futures Trading - Insurance - Mutual Funds - Options Trading - Stocks Trading

Disclaimer: All information and research results on this site is intended only for informational and educational purposes and not as a solicitation to make an investment. Therefore you should not make any decisions based on our signals, our trading system or any other information on this site.

YOU AGREE THAT YOU TRADE SOLELY AT YOUR OWN RISK and investment/trading decisions are solely your responsibility. None of our web site materials should be interpreted as a recommendation or solicitation to buy or sell any security, or to take any specific action. Any trades executed following the commentaries and Buy/Sell signals on this web site are taken at your own risk from your own account. You agree to assume full responsibility for any and all gains and losses, financial, emotional or otherwise, experienced, suffered or incurred by you.

Disclaimer   -    Privacy Policy   -    Site Map

©2002-2014  - (SOT). All Rights Reserved. SV1