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.
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).
Strategies, Market Groups, and Criteria, Oh My! This short article will bring you up to speed with all the terminology used throughout the Brutus Options Ranker to get you started building your own options trading strategies in no time!
Brutus continuously compares and ranks every option contract and near-endless combination of spreads available on the market in order to bring tailored, relevant options trades to our users – saving time, avoiding emotions, and facilitating the consistency required to succeed in options trading.
A Group in your Brutus Options Ranker strategy gives you a way to organize similar criteria into a branch in your strategy tree. This keeps your strategy tree organized and allows you to assess the rank of the group by using sub-criteria.