ZACH DE GREGORIO, CPA www.WolvesAndFinance.com This video discusses one of the major differences between stocks and options, and it has to do with Game Theory. Game Theory is the study of strategy, where you study your potential actions like moves on a chessboard. Under the framework of Game Theory, activities like trading options are known as a "Zero-sum game." This means that in every option contract there is a winner and a loser. This is different than trading stocks, which could be a win-win situation. If you invest money in a company and it does well, both parties benefit. Trading stocks could also be a lose-lose situation. The point is stocks are different than options. When someone purchases an option, they think they are going to make money. However, the person selling the option thinks they are going to make money. Only one person can be right. You have to ask yourself why you are right and the other person is wrong when they are thinking the exact opposite. Neither Zach De Gregorio or Wolves and Finance Inc. shall be liable for any damages related to information in this video. It is recommended you contact a CPA in your area for business advice.