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Bear Spread
An option strategy that makes its maximum profit when the underlying stock declines and has its maximum risk if the stock rises in price. The strategy can...
Bearish
An adjective describing an opinion or outlook that expects a decline in price, either by the general market or by an underlying stock, or both. See also Bu...
Beta
A measure of how a stock's movement correlates to the movement of the entire stock market. The Beta is not the same as volatility. See also Standard Deviat...
Bid Price
The price at which a buyer is willing to buy an option or stock.
Box Spread
A type of option arbitrage in which both a bull spread and a bear spread are established for a near-riskless position. One spread is established using put...
Broad-Based
Generally referring to an index, it indicates that the index is composed of a sufficient number of stocks or of stocks in a variety of industry groups. See...
Bull Spread
An option strategy that achieves its maximum potential if the underlying security rises far enough, and has its maximum risk if the security falls far enou...
Bullish
Describing an opinion or outlook in which one expects a rise in price, either by the general market or by an individual security. See also Bearish.
Butterfly Spread
An option strategy that has both limited risk and limited profit potential, constructed by combining a bull spread and a bear spread. Three striking prices...
Buy-write
See also Covered Call.