Reading "Dynamic Trading" by Taleb...am i supposed to understand any of it?

zghorner

zghorner

EDIT: MEANT "DYNAMIC HEDGING" IN THE TITLE

ive only made it to page 70 and already feel as though i might actually have an extra chromosome. The way he tries to explain everything in mathematical terms is brutal to read through. I just finished "Fooled by Randomness" and it was easy enough to read but i didnt really find it beneficial in anyway. I was excited to get into something specifically about options trading and whew man this book hurts my brain. I know Taleb gets a lot of hate but i enjoy watching his video speeches/lectures and do feel like he is a smart dude...so this thread isnt an attempt to bash him in any way.

Do you all think its worth dredging through the rest of Dynamic Hedging or do you have anything else to recommend? I have a basic understanding of options, ive watched every video over at optionalpha, tastytrade, and OCC. On top of proving myself an expert at selling OTM options on individual stocks in the hopes of gaining pennies...only to have it go against me for maximum losses.
 
No, never read it, but thumbed through it, definitely not 101. Start with something like Natenburg. That's baby food.

And he is a smart guy, no need to apologise for thinking that.
 
Try reading some of Euan Sinclair's option books. Volatility Trading is fairly accessible. In fact, Dynamic Hedging is a component of Volatility Arbitrage (which Volatility Trading explains).
 
tomorton said:
The Back Swan event - one very good idea. And he never never lets us forget he was the one so smart as to think of it.
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I would say antifragile is the idea that gets thrown out there the most...obviously in combination with black swan like you mentioned. Antifragility is an interesting idea but his “barbell” portfolio recommendation based off being antifragile and capitalizing on a black swan event seems a little strange. Basically just slowly bleed until a black swan event takes place and you make excellent returns via way OTM puts or what not. Curious what others think about this.
 
I gave up on it a long time ago, just way too mathematical for a mom and pop retail trader who is math challenged. :banghead:

What I did learn from reading all his other books: Tail events are mispriced. For us amateur retails, the key to a profitable trade is to figure out if it is underpriced or overpriced. :D
 
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