From Theory To Practice

Monday - Friday | 1:00 - 1:20p CT

Kurtosis Revisited

From Theory To Practice

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

From our very first From Theory to Practice piece, we learned that the positive kurtosis that exists in the market place suggests that extreme, outlier moves will occur more frequently than the normal distribution would predict. This, coupled with negative skew, offers some quantitative support for trading the market from the short side. In today’s segment, we learn that positive kurtosis also causes a clustering effect of the observations, which is yet another reason for selling premium.

From Theory To Practice More installments

See All »

Latest tastytrade Videos As of July 11

Most Shared From the last 30 days