The Saturday Spread: How Basketball Analytics May Help Extract Alpha (CPNG, DBX, BBY)

Company Overview - Coupang (CPNG) is a technology and online retail company founded in South Korea, deeply integrated into its home market [7] - The stock performance of Coupang has been disappointing, with a decline of over 22% recently [7] - Despite the negative performance, there may be a contrarian investment opportunity due to the significant drop in stock price [7] Market Dynamics - The options market is characterized by a house advantage for Wall Street professionals, but there are opportunities for retail traders to exploit mathematical loopholes [1] - Market makers price risk using a monotonic framework, where risk increases with distance from the current share price [2] - The analogy of basketball shots illustrates that while greater distance increases difficulty, the current market environment can influence outcomes significantly [5]