Accuracy of the Expected Move (Part 3)

I want to wrap up this discussion by stepping back for a broader perspective. This business of Expected Move reminds me of just that: marketing.

Being particular and well-defined makes Expected Move a concrete idea. I have no clue where the 85% number comes from or how they stumbled upon the average between ATM straddle and nearest OTM strangle. It doesn’t really matter, either. We like being able to calculate something because we feel we have knowledge and/or skills.

From a marketing standpoint, I believe the goal is to attract attention. This may be done by defining a concept that can be used and referenced. Being palpable enables it to get into our consciousness.

Market Maker Move (MMM) is similar to Expected Move except it embodies a different marketing approach. TOS brokerage created MMM and includes it on the brokerage platform. Unlike Expected Move, MMM is proprietary. Proprietary content attracts attention by adding an aura of mystery and forcing me to visit the creator directly for the information.

Something proprietary like MMM does not make for the concrete awareness of Expected Move but the marketing goal of attracting attention may still be realized. We start to talk about it and curiosity takes over:

“MMM is like Expected Move and available on TOS.”

“What is TOS?”

“Thinkorswim brokerage by TD Ameritrade. You can sign up for a free paper trading account to check it out.”

“Oh! I’ll have to check that out.”

Marketing is about spreading the word.

I categorized this post under optionScam.com to highlight the marketing/advertising undertones here. I do think Expected Move is a bit of a [deceptive] misnomer but nobody is guilty of “robbing Peter to pay Paul” or anything else. I don’t want my awareness of marketing to prevent me from making use of a good tool but I do want to be aware of marketing because in other instances people may use it in a blatant attempt to siphon capital from my tank.