Data Data Data

Butterflies are a fun trade if you are looking to put a little more capital into the market, and have a neutral assumption on the stock. Normally, butterflies are set up Out-Of-The-Money so you pay a small debit for the trade, rather than collect a credit (I prefer to collect credit on most of my…

STRATEGY DIVERSIFICATION STAYING SMALL, TRADING OFTEN. UNCORRELATED UNDERLYINGS CONTRARIAN PLAYS

Outliers are points that lie far away from other values. They are usually considered to be a 3 standard deviation move from the mean (assuming a normal distribution). The little m, or mu, as it is called, represents the average for the data set.