Options Glossary

Glossary: Market Capitalization

Last Updated: February 20, 2018


Market Capitalization

What Does Market Capitalization Mean in Options Trading?

Market Capitalization, also called 'Market Cap' for short, is the total value of outstanding shares for the Underlying.  Market Cap describes the value of the company or the size of an ETF's assets under management.

How to Use In the Brutus Options Ranker

Market cap can be added to your Brutus Options Ranker Strategy to indicate a preference for a certain size company or fund (if using an ETF).
You might consider the following targets for Market Cap:

  • Maximize Market Cap - Give preference to the largest companies.  This could work well on directionless, premium selling strategies.
  • Minimize Market Cap - Give preference to smaller companies.  This could work well in trending markets.
  • Target a specific Market Cap - You could set a preferred Market Cap value to target mid-cap companies.

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