Trouble with π concept

[Bachatero2014]

Hey Guys
Under Options and Contracts, I’m having a hard time wrapping my head around the π concept. I know it means the risk neutral probability not the probability of a stock going up or down. I think a risk neutral investor is primarily only concerned with return whereas a risk adverse investor looks at the potenial return of a stock and its risk when calculating their required rate of return (I think). But risk neutral probability? hmm I can’t explain that in words. Is this in important concept or am I just spinning my wheels for no reason?
thanks

 

[S2000magician]

Don’t think of it as a probability. It’s merely a weight.
Calling it a probability (not you doing it; the curriculum doing it) is needlessly confusing.

 

[Bachatero2014]

ahhhh ya that makes more sense. thanks a lot

 

[S2000magician]

My pleasure.