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Bullish

• Optimistic. Someone who is bullish may buy naked call options.

 
 Embedded terms in definition
 Buy
Call option
Call
Options
 
 Referenced Terms
 Arms index: Also known as a trading index (TRIN)= (number of advancing issues)/ (number of declining issues) (Total up volume )/ (total down volume). An advance/decline market indicator. Less than 1.0 indicates Bullish demand, while above 1.0 is bearish. The index often is smoothed with a simple moving average.

 Bear spread: Is an option strategy which is structured to profit from price declines in the underlying market. These spreads can be done for credits or debits. They can be built with calls or puts. When these strategies are done one-for-one, then the purchase of the higher strike and the sale of the lower strike establishes the Bullish characteristic. Here, the common strategies are vertical, diagonal, and weighted spreads.

 Bull spread: A spread strategy in which an investor buys an out-of-the-money put option, financing it by selling an out-of-the money call option on the same underlying.Is an option strategy which is structured to profit from price increases in the underlying market. These spreads can be done for credits or debits. They can be built with calls or puts. When these strategies are done one-for-one, then the purchase of the lower strike and the sale of the higher strike establish the Bullish characteristic. Here, the common strategies are vertical, diagonal, and weighted spreads.

 Bullish, bearish: Words used to describe investor attitudes. Bullish refers to an optimistic outlook while bearish means a pessimistic outlook.

 Diagonal spread: Is the purchase and sale of puts or calls for the same instrument but for different strike prices and different delivery dates. These strategies can be done for debits or credits. Also, they are Bullish or bearish depending on the relationship of the purchased to sold strike price. When the lower strike is purchased and the higher strike is sold then the strategy has a bullish configuration. When the lower strike is sold and the higher strike is purchased then the strategy has a bearish configuration.

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