OptionAutomator Options Trading Glossary:

Definition, Examples & Resources:Net-Long Setups'

« Back to the Options Trading Glossary

What is Net-Long Setups in Options Trading ?

Net-Long Setups
A Net-Long Setup is any options trading position which has a higher value of long contracts vs. short contracts in your spread.  When these positions are opened, the trader will always pay a debit. Generally, Net-Long trades are directional trades, where the trader either has a bearish or bullish assumption and needs the underlying to move the spreads to break-even point and beyond in order to profit.

Broader Term

  • Options Setup
  • Narrower Term

    Thanks for sharing. Connect with us on social media for additional content!

    Send this to a friend

    Hi, this may be interesting you: Net-Long Setups! This is the link: https://www.optionautomator.com/Options-Trading-Glossary/net-long-setups/