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Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts -- Ignore unavailable to you. Want to Upgrade?


To: ajtj99 who wrote (85178)3/19/2024 11:17:03 PM
From: Sun Tzu1 Recommendation

Recommended By
ajtj99

  Read Replies (1) | Respond to of 97912
 
It's neither. It's about pricing the full range of possible outcomes along with their likelihood. That's what I meant when I said it's about pricing the distribution.

Most people think X will beat their numbers and goes up or misses and goes down. But full distribution also includes they beat their number and go down and miss but go up and all the other shades in between as well as by how much it will go up/down.

And then, if you have handle on this, you start to limit your risk by trading spreads and structuring around the outcomes.