Let’s first take a quick look at, Insider Crimes, Funny Money and Options Rackets:
I had always assumed the entire business of the markets to be a massive criminal enterprise that allowed public participation simply because it made a few people extremely wealthy. But, I wondered, when do the fewest people make the most money in the shortest period of time?
During gaps.
A gap is a sudden, violent change in the price of a stock, future, bond, etc. Gaps are caused by some event that temporarily creates a state of disequilibrium in order flows. Gaps on stocks started to draw my attention because I just knew that insiders (and others) were pre-positioning themselves to profit from those moves.
