I bet you that you that you don’t fully understand what Nassim Taleb is talking about. The novice option traders like you are often stopped by their inability to answer targeted questions, therefore, if you want to demonstrate to us that you actually thoroughly understand Nassim’s concept of mis-priced options, then please do so but with different syntax and with different mathematical formulas. Solve real problems and then you’ll have real skills.
@SimpleMeLike, here is the recipe Step 1) Borrow as much money as you can Step 2) Buy one way ticket to Panama (or some place where people won’t find you). Step 3) Buy OTMs Puts/Calls (i.e. lottery tickets) Step 4) If you’re a lucky and make a bundle, then repay the money you borrowed and enjoy the rest of your profits. Step 5) If you’re unlucky and lose everything, then fly away to Panama and never return, and start the same scheme from different country (jurisdiction) over again until it works.
I came to the same conclusion with out the need of advanced math. The math is just a way to demonstrate what I understood purely from observation.