Somehow it feels that half of the world takes too much unnecessary/bad risk (prediction markets, crypto, memestonks, gambling…) while the other half is excessively risk-averse and conservative w.r.t. investing, career changes, creating opportunities etc.
Average well-akshually guy:
Bbut the Black-Scholes model assumes normal distribution for the underlying log returns with constant volatlity across strikes! The markets are fat tailed - can’t you see?
Quant trader evaluating Black-Scholes for the millionth time in prod that day:
He thinks about us. 🥲
I bet that if he started shitposting on LinkedIn the way he did before the compliance officer would let him back to Twitter 🤣
I love it when people don’t admit they said some bullshit because they have tens of thousands of loyal followers and they don’t want to lose face in front of them. Fortunately humility, logical reasoning and accepting own mistakes aren’t important in quant research. Right?
