Thursday, 31 October 2013

NEUTRAL STRATEGIES

Neutral options trading strategies are employed when the options trader does not know whether the underlying stock price will rise or fall. Also known as non-directional strategies, they are so named because the potential to profit does not depend on whether the underlying stock price will go upwards or downwards. Rather, the correct neutral strategy to employ depends on the expected volatility of the underlying stock price....

Bullish on Volatility
Neutral trading strategies that profit when the underlying stock price experience big moves upwards or downwards include the long straddle, long strangle, short condorsand short butterflies.
Bearish on Volatility

Neutral trading strategies that profit when the underlying stock price experience little or no movement include theshort straddle, short strangle, ratio spreads, 

9 comments:

  1. Trading is very interesting, if any one invest here with good knowledge and sure shot tips for investment where he can earn money with huge profit, so he need sure shot advisory.........
    Trading Tips||
    Daily Nifty Levels

    ReplyDelete
    Replies
    1. .! I hope you have a terrific trading..Check nifty tips

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  2. These options strategies can be great ways to invest or leverage existing positions for investors with a neutral market sentiment.
    nifty option trading tips

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  3. This option tips are really useful to all the traders and investors on Indian stock market. I appreciate the effort..........

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  4. thanks for the option tips... this give me good knowledge of market stretegy......

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  5. I appreciate your blogs. and also your option tips.....

    ReplyDelete