

Hacker's Guide to Printing Money in the Stock Market - davidwurtz
http://blog.davidwurtz.com/hackers-guide-to-printing-money-in-the-stock

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rfreytag
This is empirical nonsense. Market-behavior is not normally distributed so
basic statistics and even portfolio theory just puts you back in the same
situation as Lehman Bros..

[http://fora.tv/2008/02/04/Nassim_Nicholas_Taleb_A_Crazier_Fu...](http://fora.tv/2008/02/04/Nassim_Nicholas_Taleb_A_Crazier_Future#Nassim_Nicholas_Taleb_on_Mediocristan)

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bjoernw
Just play a round of poker with friends.

Only rational way to invest:
<http://en.wikipedia.org/wiki/Modern_portfolio_theory>

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davidwurtz
Only apply the theory to stocks you'd like to own.

I acknowledge the strategy isn't risk free (no strategy is), but if you're
going to buy a stock, considering using this strategy instead.

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vitriolic
Are you kidding me?

Keep writing naked puts and then compound it by assessing your risk based on
historical data.

This is a surefire way of loosing your shirt when the next Lehman level event
comes around.

The risk in your strategy is that the stock market has very fat tails and
unlikely events happen with more regularity than they should -- and the math
that you're using to assess your risk discounts all these events by terming
them unlikely.

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davidwurtz
sure. you've got to watch out for black swans..you should certainly shouldn't
plan your portfolio around such a thing. You may as well put your money in
CDs.

