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. Investopedia Says: 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. Related Terms: Bear Bull Delta Neutral Gamma Neutral Index Market Neutral Option Security |