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

Hey everyone. This is Kirk here again at optionalpha.com and in today's daily call, we’re going to answer the question, “What are contrarian investors?” I don't know who officially labeled the term contrarian investors, but it's basically the concept that people are taking the other side of a position. If everyone is bullish, you might be bearish. If everyone is bearish, you might be bullish. You could even say in most cases that some of the greatest investors of all time have been really good contrarian investors. Not that they weren't long-term bullish on say the broad US economy and the markets, but they were bullish during the right times and they were bearish during the right times and it’s usually some combination of looking at either charts or forward PEs or crowd or herd mentality to see where most people are and then taking the opposite view. The idea is really that most investors and most traders I guess are really dumb money and that smart money usually takes the opposite side which I think has bee