neutral

Neutral

1) A term that describes an option on a security or market that is neither bullish nor bearish.

2) A term that describes a person who is non-biased in the case of a dispute, such as an arbitrator.

Notes:

If an investor has a neutral opinion, that is, he or she feels a security or index will neither increase nor decrease in value in the near future, the investor can undertake an option strategy that may profit despite the lack of movement in the underlying security.

See also: Bear, Bull, Delta Neutral, Gamma Neutral, Index, Market Neutral, Option, Security

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neutral

Describing an opinion that is neither bearish not bullish. Neutral option strategies are generally designed to perform best if there is little or no net change in the price of the underlying stock or index. See also Bearish and Bullish.

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neutral

1. An investment opinion that is neither bullish nor bearish. A neutral opinion for an individual stock generally indicates the stock should not be purchased or sold.

2. Of or relating to an investment position that is likely to produce the best results if the market does not exhibit a major upward or downward movement.