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 talk about how to profit from the emotions of other traders and investors. Someone recently asked again in our Facebook community and they said, “Kirk. How do you determine a psychological factor when considering options or do you consider any psychological implications upon noticing volatility in a certain stock or a movement in a certain stock? Are you just focused on the numbers or do you see value in the emotions of others in the market?” I thought it was an interesting insight. “Do you see value? Can we make a trade based on the emotions of other people and how do we discern the emotions of other traders in the market?” I think this is actually a very easy answer and the easy answer to this is that as options traders, we are always making trades based on the emotions of the underlying market or the mass or the herd and many people have said this. I don’t know who was originally credited with