Jacob Perlman, Tom Sosnoff, and Tony Battista discuss the efficiency market hypothesis (EMH) and its three forms. Jacob shares findings on VIX predictive power for short option success, challenging EMH. They delve into potential causes like high kurtosis and black swan events. Key takeaway: strategies that appear highly profitable could involve unseen risks. Don't assume a sure thing in trading; be aware of potential outsized risks. Their discussion underscores prudent risk management in options trading.
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