Option Theory
They say politics makes strange bedfellows, but investing makes stranger ones. At one end, you have the dry-bones academics who objectively juggle information and compute theories. At the other, you have sweaty everyday people who invest knowing nothing of the theory and often don’t behave like they should.
Alongside them are the every-day-in-the-market sharks. The big-money guys, professional traders and other adepts. Theory, they say? It’s just a tool, and they make their money punching holes in it.
Consider the theory of risk. Understanding options risk is central to knowing how to make money trading them. Academics and market makers understand it alike, but each treats it differently. And, most amateurs look at it backward.
Option Theory Articles on Smart Profits Report:
The Dow Industrials: The "Sell In May" Theory And Where The Markets Could Head From Here
Dow Theory: The Most Important And Powerful Concept In Technical Analysis
Game Theory: Making Profits With Mathematical Precision
Quantitative Research: An Interview with Dean Albrecht
Option Trading Recommendations: What Investment "Gurus" Do When No One’s Looking
Options Trading Experts: A Meeting of the World’s Top Options Traders
Option Pitfalls: Avoid These Five Options "Red Flags"
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