Equivalent strategy: A strategy which has the same risk-reward profile as another strategy. For example, a long May 60-65 call vertical spread is equivalent to a short May 60-65 put vertical spread.

Married Put Strategy: The simultaneous purchase of stock and put options representing an equivalent number of shares when the position is designated at that time as a hedge. This is a limited risk strategy during the life of the puts because the stock can always be sold for at least the strike price of the purchased puts.

Neutral strategy: 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.

Treasury Bill/Option Strategy: (90/10 strategy) a method of investment in which one places approximately 90% of his funds in risk-free, interest-bearing assets such as Treasury bills, and buys options with the remainder of his assets.

Spread Strategy: Any option position having both long options and short options of the same type on the same underlying security.

Ratio Strategy: A strategy in which one has an unequal number of long securities and short securities. Normally, it implies a preponderance of short options over either long options or long stock.

Protected Strategy: A position that has limited risk. A protected short sale (short stock, long call) has limited risk, as does a protected straddle write (short straddle, long out-of-the-money combination).

Protected Strategy: A position that has limited risk. A protected short sale (short stock, long call) has limited risk, as does a protected straddle write (short straddle, long out-of-the-money combination).