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OptionAutomator Options Trading Glossary:
Definition, Examples & Resources:Neutral'

What is Neutral in Options Trading ?

Neutral: A 'Neutral Options Spread' is a combination of options trades that do not profit from big moves either upside or downside, but rather it is designed to take advantage of the range bound market and generates profits if the stock remains in a range.

Explore More of OptionAutomator’s Content:

Glossary: Calendar Strangle
Similar to a calendar straddle. A calendar strangle involves buying a long term strangle and selling a short term strangle simultaneously. This is a neutral options' trading strategy.[click to read more]
Glossary: Condor Spread
A condor spread is a range-bound neutral options trading strategy in which the trader takes advantage of time decay in the range-bound market.[click to read more]
Glossary: Delta Neutral
An options trading strategy in which the effect of delta is neutralized by combining options with positive delta and options with negative delta to get a complex position that remains same in value provided there is no huge abrupt directional move. The position's delta[click to read more]
What is ‘Short’ and ‘CE’ in option trading?
At The Money (OTM) Long Put Calendar Spread
In this article, we'll take a deep dive into the ATM Long Put Calendar Spread available now for your strategies in the Brutus Options Ranker.
What is a Strategy?
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.