The Skinny on Options: Abstract Applications

Trading Thermodynamics

The Skinny on Options: Abstract Applications

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

In today’s Skinny, we lean on the laws of thermodynamics to help us better appreciate the randomness and unpredictability of the financial markets. Specifically, it is the second law’s reference to ‘wasted energy’ over time, as a system searches for equilibrium, that piques our interest. If we view the stock market as a closed system of sorts, then the repeated use of more traditional methods of analysis will only lead to more entropy over time.

The Skinny on Options: Abstract Applications More installments

See All »

Latest tastytrade Videos As of July 20

Most Shared From the last 30 days