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by nramanand 429 days ago
Doesn't that mean he was long volatility?

Taleb's point seems more to be that he saw a mispricing and traded on it one day, rather than anything profound regarding option pricing, unless I am missing something. Anyway, it has little to do with what's being said in the article.
1 comments
huijzer 429 days ago
> Doesn't that mean he was long volatility?

Now that you say it could be that he misspoke indeed.

> Taleb's point seems more to be that he saw a mispricing and traded on it one day

Okay so Taleb was literally an "option trader" as in he traded one option on one day in his life?

> Anyway, it has little to do with what's being said in the article.

How is Taleb, who is an option trader and who has written about options trading for years, not related to an article on an options trade?

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nramanand 429 days ago
I guess because the article is talking about insider trading through the use of options and your point on Taleb is how he traded options like any option trader would.

I should be clear that what you seem to think ties these together, i.e:

> given the volatility, at least one would be a hit in this month.

I don't actually believe to be true. It's not like these options aren't being priced somewhat accurately. There could be insanely high volatility and all that needs to happen is for the price to go up instead of down for none of your options to "hit."

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