Describing an opinion that is neither bearish nor 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. This is an option strategy (or stock and option position) expected to benefit from a neutral market outcome.
See Also:
Neutral: An adjective describing the belief that a stock or the market in general will neither rise nor decline significantly.
Strategy: With respect to option investments, a preconceived, logical plan of position selection and follow-up action.
