No, Small Probabilities are Not ‘Attractive to Sell’: A Comment (revised)Nassim Nicholas TalebNYU-PolyJanuary 5, 2013Financial Analysts Journal, ForthcomingAbstract: Owing to the convexity of the payoff of out-of-the money options, an extremely small probability of a large deviation unseen in past data justifies rationally buying them, or at least justifies excessive caution in not being exposed [...]
@nntaleb- nntaleb: Modernity: routine in place of physical effort, physical effort in place of mental strain, & mental strain in place of clarity #Antifragile
- nntaleb: RT @CTaylorMPearson: An attempt at defining what a purpose-driven, productive, detouristified life looks like - http://t.co/p1dSCIm0qQ - in…
- nntaleb: RT @TimWarmels: Bullshit protector? Try a non-fluent language @nntaleb http://t.co/ufYsFOCvdr
- nntaleb: @TimWarmels Excellent!
- nntaleb: RT @portfolio14: Not understanding #antifragile benefit of 2nd-order effect: Steady cardio puts body into hypothyroid. http://t.co/YIuHZs7v…
- nntaleb: @pjfny @GTCost I don't agree. I do not see why Mr Gurdgiev is comparing a Whelan to a doctor not to a fortune teller. It is all there.