If you don’t know a horse, bet on the jockey. This old maxim, heard many years ago from a high-ranking trader at a large bank, is worth pondering as a Zen koan. The message: Instead of trying to guess what might happen in the market, focus on known things like the enduring qualities of well-run companies.
Investors can do this by taking advantage of short-term volatility, which affects short-term options premiums, to tap blue-chip stocks with bright long-term prospects.
