Profiting From Overreaction

<p>Our entire process can be boiled down to one, singular advantage: taking advantage of the overreaction that is priced into volatility. As our research has shown over and over again, <a href="https://ontt.tv/2Wm99rL">implied volatility is routinely greater than realized volatility</a>, which ends up leaving premium sellers with an advantage <a href="https://ontt.tv/HkasF">over premium buyers</a>. Interestingly, however, can this same idea be applied to stock prices themselves? In other words, can we position ourselves to take advantage of overreaction in stock price movements? Today, we look at both FB and AMZN to discuss.</p> <p><a href="mailto:Dr.%20James%20Schultz%20(@jschultzf3)%20/%20Twitter">Be sure to connect with Dr. Jim on Twitter!</a></p>