If the option buyer thinks the price may rise, then he is considered to be 'bullish' in his view of the market. The rise may be in the general market or that of any stock chosen. A market trending higher is often called "bullish" or a "bull market."
A bear trap encourages bearish traders to place shorts on stock options since they expect the underlying prices to go down. But this doesn't happen. Instead, it either stays the same or starts increasing.
A sudden rise in prices of a security or market, due to many traders taking bullish positions, and then followed by sudden change of direction to the downside that traps the inexperienced trader in wrong side of the trade.[click to read more]
A fully covered short put option by cash is known as Cash Secured Put". It involves writing an at-the-money or out-of-the-money put option and simultaneously setting aside enough cash to buy the stock. Bullish investors profit if the option expires out of the money or [click to read more]"
A strategy with an upfront cost (debit) that profits if the underlying (stock) rises in price. This spread involves buying two calls with the same expiration date, but with a different strike price. A bull call spread aims to reduce the upfront cost of buying call options in order to profit from stocks that are expected to rise moderately. [click to read more]
Strategies are the foundation for Brutus to perform a rank. A strategy consists of defining a combo of Market Group Option Setup (spread) to be Scan, as well as any stock or options criteria that is important to your trading requirements.
Setups are a specific combination of options contracts that matches a strategic objective. Setups are sometimes referred to as spreads or "strategies" (not to be confused with a Brutus Options Ranking strategy).