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

Hey everyone, it's Kirk here again and welcome back to the daily call. Today, we are going to be looking at the Dow Jones Industrial Average, commonly referred to as the Dow and trying to answer the question, “Is this a broken index or still something worth following?” I think the first thing obviously is just understanding what is the Dow. If you're never heard of the Dow… I'm sure if you've traded for a while or if you've been in the markets, you've undoubtedly heard of the Dow Jones or somebody call it the Dow or people even just refer it honestly as the market, even though it's not the only measure of the market. But the Dow Jones is basically a price weighted average of the top or the biggest 30 largest American publicly traded company. It's usually done by market cap or by size, not necessarily by stock price. But what we mean by price weighted is that it also means that the higher priced stocks sometimes have more influence on the index performance versus lower priced stocks. There's oftentimes where t