US ADVANCED COMPUTING INFRASTRUCTURE, INC.
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Kurtotic Stock Distribution Details

Leptokurtic Stock Details

Investor Expectations & Possible Trading Implications

Investors may expect a normal distribution of stock prices.  Stocks go up and down seemingly randomly along with expectedly random new information. However, with a stock with a leptokurtic distribution, the investor sees typical observations closer to the mean. There is also more of a chance that a future observation will be an outlier. When plotted, the peak is taller and narrower (typical observations closer to the mean) and the tails rise up from the x-axis (more frequent outliers).

This provides information for a unique trading opportunity in stocks and stock options.

​This way, these stocks will typically have smaller movements, and lower implied volatility, which reduces the cost of stock options, but still have the ability to surprise with a large standard deviation move. We believe the combination of leptokurtic and low variance gives an options trader a chance to invest less money buying an option, predict a direction of surprise, and earn profits as the stock eventually makes its big more.

At least, this is our hypothesis on how it should work. No trading strategy is fool-proof. We have felt foolish on a few of our leptokurtic options bets where the options seemed cheap, but we bet on a move in the wrong direction.

Picture of a Catholic church against a blue sky, surrounded by red flowers.
This church represents a leptokurtic distribution. The peak is high and narrow, and the tails are wide and sloping.
MEME photo of Jeffrey Cohen's face and a cute leptokurtic joke.
If you made it this far, then you deserve a MEME. Thank you imgflip.com

Platykurtic Stock Details

Investor Expectations & Possible Trading Implications
Investors may expect a normal distribution of stock prices.  Stocks go up and down seemingly randomly along with expectedly random new information. However, with a stock with a platykurtic distribution, the investor sees typical observations grouped into a typical range, although that range may be slightly wider than a normal distribution. There is also a smaller chance that a future observation will be an outlier. When plotted, the peak is shorter and wider (typical observations spread more widely around the mean) and the tails are pushed flat into the x-axis (less frequent outliers).

This provides information for a unique trading opportunity in stocks and stock options.

​These stocks will typically have a wider range of daily price changes, and potentially higher actual and implied volatility, which increases the cost of stock options. However, it will be less likely to surprise with a large standard deviation move. 

We believe the combination of platykurtic and low variance gives an options trader a chance to sell options and have less chance of making a big payout from any one daily move.


At least, this is our hypothesis on how it should work. No trading strategy is fool-proof, and this discussion does not take into account fundamental performance of the company or the markets...only the distribution of 1 year of daily price changes. Do your own due diligence.
Image of a red and white mushroom with a flat bottom, growing out of green ground.
This mushroom represents a platykurtic distribution. The peak is low and wide, and the tails are non-existent.
Funny picture of man in pink yellowing a joke about platykurtic stocks.
If you made it this far, then you deserve a MEME. Thank you imgflip.com

Copyright 2023 US Advanced Computing Infrastructure, Inc.  
Chicago Quantum (SM) is a protected service mark, registration 113562, by the Secretary of State of Illinois.
US Advanced Computing Infrastructure CRD#: 316375
Business Mailing Address: 833 Central Avenue #1292, Highland Park, Illinois 60035-7292

Disclaimer: 
All investing, stock forecasts, and investment strategies include the risk of loss for some or even all of your capital.  Please do your due diligence and research before investing.  Statements made on our website or in social media are not investment advice.  They do not take into account your unique circumstances, risk tolerance or investing objectives.  Please consider our website and social media outlets as for informational purposes only.

The stocks mentioned may not be suitable for all investors.  As with any investment there is risk.  Past performance is not an indication of future results.  Please do your own due diligence on any stock portfolios highlighted.  Finally, we make no guarantees for your financial results.  You bear all the risk, and gain all the rewards of your investments.

Unauthorized reproduction or redistribution of this information or the analysis provided in any form is strictly prohibited.


  • Home
    • About Us
    • Contact
    • Our Brochure
    • Positions
    • T-shirts
    • Nextsteps
  • Advisory Services
    • Stock Portfolio Services
    • US Composite: Up Run
    • US Composite: Down Run
    • Your Stocks: Up Run
    • Your Stocks: Down Run
    • Investment Planning
    • Membership
  • Project Services
  • Market Information
    • Retail Investor
    • Why Use ETFs
    • Negative BETA Stocks
    • Top Dividend Stocks
    • Stock Price Variance
    • Leptokurtic Stocks
    • Platykurtic Stocks
    • High & Low BETA Stocks
    • Skewness in Daily Returns
    • High & Low Volume Stocks
    • Top Stock Movers
    • Price & Volume Spikes
    • Stock Splits
    • Common Stock Beta Detail
    • More Details on Kurtotic Stocks
    • US Banking Observations
    • Liquidity Research
    • MEME Stocks
    • Corporate Finance 101
  • Managed Accounts
    • Managed Account BLOG
    • Managed Account Fees
    • Considerations
  • Quantum Computing
    • Quantum Computing Use Cases
    • Use Case Detail
    • Platforms
    • Platforms Detail
    • Quantum Computing Notes
    • Quantum Computing Stocks
    • PQC Post Quantum Cryptography
  • Insights of Today
  • Research
  • New BLOG 2023