"In the stock market, Bulls make money, Bears make money, it%u2019s only the Pigs who get slaughtered."
I would like to borrow this saying and adapt it a bit for the Derivatives market, thus -
"In the Options market, it%u2019s the Human Beings with some mathematical skills (Mathematicians) who make money; the Bulls, the Bears, the Pigs and all other Animals get slaughtered."
It is very difficult, nay almost impossible, to drill down in the heads of the general investment community, the lay people that unlike the stock market where you can be a Bull or a Bear and make money, the Options market is just not for Animals but for intelligent Humans beings, people who are not afraid of the Maths, people who are mathematically gifted, or atleast make use of implements & tools of Maths developed by such people who know their maths; if you try to be a Bull or a Bear in the Options market then you are definitely going to be slaughtered just like the Pigs. This market is just not made for such animals, boss. Period.
This proverb was brought to life in the recent crash/correction in the Indian market.
In the weeks leading to the crash, the market was unanimously opined to be overheated and almost all were expecting a crash/correction coming their way soon, possibly on the derivatives expiry day of 26/7.
