The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to answer the question – “What is bottom-fishing as it relates to the stock market?” You might often hear people say there’s some bottom-fishing going on or we could see some bottom-fishing when it comes to stocks and basically, it’s this concept that at some point, either the regular market or any particular stock or ETF that you’re trading gets sold off enough that we find people coming back in and fishing for good opportunities. And so, I don’t know why they call it bottom-fishing. Maybe because it creates the bottom in the market. But inevitably, when we see something sell off, it now becomes a better opportunity. You take one company that has the same stream of cash flow and it’s trading at $100. Well, now, if it sells off to $80, that same stream of cash flow hasn’t changed, but now, the price of the equity has changed from $100 to $80 and now, it becomes a more attractive investment and that’s