How To Trade Stocks Like a Vegas Sportsbook
Sportsbooks set the line for sports; the CBOE sets the line for stocks.
The “line” in Vegas may be something you’ve heard of before. It represents the likelihood of a win going to either team.
The line is set by the sportsbook, to balance out bets with the public. It’s represented by how many points are allotted to the underdog.
When the line moves, it moves for one team, and against the other.
Ultimately, the “line” represents how optimistic or pessimistic the betting public is about a match-up between two teams.
Sportsbooks are constantly balancing the line against how much is bet on either side.
In the stock market, there is almost an exact equivalent.