The Joy of Contrarian Investing

Investors are buying puts as fast as they can place the orders. The market's shaking, stock prices are falling faster than a brick dropped from the top of the Empire State Building. Fear. Panic. Get me out at any price.

That describes, charitably and for a family audience, investors' sentiment when the market performs as it did for most of 2000. But investors' feeling disaster is at hand can be the perfect opportunity for contrarian traders, those who believe market extremes represent opportunity, to put their philosophy to work.

In this week's Options Forum, we'll discuss the oft-mentioned contrarian theory of investing and ways to profit from it. ...