A predefined option trading plan devised to buy or sell option(s), and then take profit or stop loss at a predefined price and/or time points.
The Brutus Options Ranker makes use of the term "strategy" to define the required inputs from a trader to rank a relevant options trade as part of the trader's overall trading strategy. This includes selecting a Market Group, choosing which Options Setup (or spreads) to be ranked and finally adding relevant criteria, which must be set to 'maximize', 'minimize', or 'target' a specific value.
The implied volatility of an option contract is an estimation of contracts volatility based on the current trading price. The more expensive the option, the higher the implied volatility. Implied volatility gives the trader a sense if the contract is relatively cheap or expensive.
Multiple-Criteria Decision Making (MCDM) is a field of mathematics that explicitly analyzes multiple conflicting criteria in decision making. The Brutus Options Ranker uses proprietary adoption of MCDM to rank daily options trades against investors custom trading strategies.
The ask price is the most competitive price of stock or an option at which a seller is willing to sell. Conversely, this is the price that the stock or option may be purchased at when a market order is used. [click to read more]
An AON is a type of order which is only executed if it can be filled completely. There need to be enough shares available to fill the order entirely, otherwise, the order is canceled.[click to read more]
A bear call spread is where a call is sold close to the current underlying price and the risk is fixed by purchasing another call with a higher strike price. A bear put spread is where a put is purchased close to the current underlying price and lower strike put is purchased to reduce the trade cost. [click to read more]
A technique of using options in multiple ways to gain profit from underlying stock when it is moving downwards. It is necessary to identify how far the stock will go down and the time frame during which the decline will happen in order to select the optimum trading stra[click to read more]
The bid price is the most competitive price for a stock or an option at which a buyer is willing to purchase the asset. Conversely, this is the price that the stock or option may be sold at when a market order is used. [click to read more]