Anchoring effect

Recency bias

Recency bias overvalues recent events in decision-making

Bias ratio

Bias ratio detects valuation bias in asset pricing

Overconfidence effect

Overconfidence leads to overtrading and underperformance

the disposition effect causes

Investors sell winners too early and hold losers too long

Capital asset pricing model

Treynor-Black model combines active stock picking with a passive market portfolio

Straddle

Straddle strategy profits from large price movements in either direction