What Nassim Taleb Did on Black Monday 1987

Discussion in 'Strategy Building' started by Error Correction Funder, Mar 24, 2018.

  1. 312

    312

    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.
     
    #81     Apr 16, 2018
  2. destriero

    destriero

    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.
     
    #82     Apr 16, 2018
    312 likes this.
  3. destriero

    destriero

    #83     Apr 16, 2018
    312 likes this.
  4. destriero

    destriero


  5. How much does it cost to trade in the UK?
    It's only about 5, 6 dollars in the US.
     
    #85     Apr 17, 2018
    312 likes this.
  6. But how much can he bench press?:p
     
    #86     Apr 18, 2018
    312 likes this.
  7. 312

    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.
     
    #87     Apr 18, 2018