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neutral strategies

The Power of Neutrality

The advantages and risks of trading within price ranges

Recap

Neutral strategies are a major game-changer for most new traders and create opportunities that
simply cannot take advantage of. They are essential tools for success as an options-trader.
  • Neutral strategies allow us to trade without a directional assumption
  • Neutral strategies carry risk in BOTH directions
  • They profit if the share price stays within a range
  • Wider ranges have a higher
    but lower profit potential
  • Tighter ranges have a lower POP but a higher profit potential

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neutral strategies