What Nassim Taleb Did on Black Monday 1987

[312]

Not watching it, but Taleb made exactly SHIT from 1987. He lost money nearly every month that he was at Paloma, as you would expect from buying garbage wings, outrights.

He is where money goes to die.

Source? Cause the article above says the exact opposite. Not sure if that's why you're bringing it up:


In 1986, Taleb moved to First Boston Inc. (now part of Credit Suisse Group), where fellow traders called him “Nassim the Dream,” recalls Demetrios Diakolios, a former colleague. At First Boston, Taleb, then 28, built what he terms a “massive” position in out-of-the-money calls on Eurodollar futures.

‘He Cleaned Up’

On Oct. 19, 1987, he was sitting at a row of desks on First Boston’s trading floor at Park Avenue Plaza in Manhattan when his dream came true. The Dow Jones Industrial Average plummeted 22.6 percent in the biggest one-day drop in U.S. stock market history. The crash caused Eurodollar futures to surge after the U.S. Federal Reserve pumped liquidity into the banking system, lowering interbank borrowing rates. Taleb’s positions exploded once again. “We all knew that he did well, that he cleaned up on that and made $35 million to $40 million,” Diakolios says of the sum the bank made on Taleb’s positions. “The equities guys below us thought, ‘Why did some guy upstairs make all this money on a day when everybody got killed?”‘ The payday for Taleb was big. Without divulging the amount, he says 97 percent of the money he’s ever made was on Black Monday in 1987.

 

[destriero]

Source? Cause the article above says the exact opposite. Not sure if that's why you're bringing it up:


In 1986, Taleb moved to First Boston Inc. (now part of Credit Suisse Group), where fellow traders called him “Nassim the Dream,” recalls Demetrios Diakolios, a former colleague. At First Boston, Taleb, then 28, built what he terms a “massive” position in out-of-the-money calls on Eurodollar futures.

‘He Cleaned Up’

On Oct. 19, 1987, he was sitting at a row of desks on First Boston’s trading floor at Park Avenue Plaza in Manhattan when his dream came true. The Dow Jones Industrial Average plummeted 22.6 percent in the biggest one-day drop in U.S. stock market history. The crash caused Eurodollar futures to surge after the U.S. Federal Reserve pumped liquidity into the banking system, lowering interbank borrowing rates. Taleb’s positions exploded once again. “We all knew that he did well, that he cleaned up on that and made $35 million to $40 million,” Diakolios says of the sum the bank made on Taleb’s positions. “The equities guys below us thought, ‘Why did some guy upstairs make all this money on a day when everybody got killed?”‘ The payday for Taleb was big. Without divulging the amount, he says 97 percent of the money he’s ever made was on Black Monday in 1987.

Personally. He made something along the lines of 5% bonus. The $40MM was pure BS. Wildly exaggerated. It was rumored to be 5-$10MM for the bank.

He couldn't make money at Paloma even if he'd tried to print some.

 

[destriero]

You know you're screwed when even Sosnoff can smell BS:

http://www.allaboutalpha.com/blog/2...ar-claim-from-black-swan-fund-not-from-taleb/

In itself proof of nothing as I assume that Spitznagel trades more than SPX. How would he get around position-limits? Why not OTC?

There is no client access on his site. No DD, etc.

https://www.universa.net/about.html

 

[destriero]

More BS:

https://www.tavakolistructuredfinance.com/2009/06/taleb-performance-myth/

 

[DallasCowboysFan]

I don't feel bad for the dumb money- it just piles up in my account . Hedging dynamically is not for modest traders like me and I pay UK commissions so I have to think twice before adjusting-so far only once this year

How much does it cost to trade in the UK?
It's only about 5, 6 dollars in the US.

 

[BONECRUSHER]

The man is a near genius. He is a finance expert, successful trader, master of mathematics, speaks 5,6 languages and can intellectually argue about ancient languages and the origin of words....Sumerian, Aramaic etc.

He is an intellectual giant .

He is on twitter and tweets daily, check him out.

But how much can he bench press?

 

[312]

I've met few Cowboys fans who can reliably gauge someone's expertise across finance, math, and ancient languages such as Sumerian and Aramaic in real life. And those whom I do know don't pay $5 per trade. This board is great. Long live the internet and contemporary times.