Taleb is first a market practitioner who uses models and pricing formulae to enhance trading and not the other way around. If there is a discrepancy between theory and reality he doesn't blame the markets.

The book is very personal and leaves no doubt what the author's opinion is on VAR, continuous hedging and other sacred cows of modern finance. The debacle in the financial markets in 1998 and the apologetic excuses by famous traders and theoreticians indicates that there is more than a grain of truth in Taleb's skepticism.

The importance of this book is that whether one agrees or disagrees with Taleb, it forces the reader to question his basic assumptions and rethink common truths. The book is unique: it is stylish, philosophical, literary, and if one may say so of a hardcore financial book - it is very entertaining.


Invaluable book that bridges gap between theory and practice   March 21, 1999
 5 out of 6 found this review helpful

Taleb's book successfully bridges the gap between well-posited but academic accounts of options theory and the practical knowledge and vernacular that are privy to the best traders. It is thoughtful and interesting, scholarly yet intuitive - and written in such picturesque prose that will at once charm and provoke you! The author makes the point well that market reality at times can be grim and much less forgiving - and certainly much richer - than current theoretical modeling make it out to be and shows how the trader can stack the odds in his or her favor. This book is an invaluable source of ideas for anyone who wants to monetize their empirical research on markets.


Without a doubt the best book on financial markets ever   February 21, 1998
 0 out of 2 found this review helpful

Without a doubt the best book on financial markets ever. Very insightfull, the only clear exposition of what really maters to real traders in the real world.


Good but repeatedly flawed...   February 16, 1998
 3 out of 4 found this review helpful

Taleb has written an insightful piece on derivatives trading, BUT repeated errors in definitions, symbols, and charting makes, what could have been a work of art, this book slightly above average... From a market makers perspective, I recommend Option Market Making, by A Baird...


best traders tool ive seen yet - but leaves u wanting more!   October 13, 1997
 1 out of 4 found this review helpful

simply the best exposition on vanillas certainly that ive read though needed more on pricing & risk management of currency options both vanillas and barriers - in terms of day to day issues for traders - building interpolators, forward vols, economic vs calender vols, fenics pricing issues - dirty tricks, applications in current pre-emu environment, use of broker mkt etc etc etc - ie book good but for the full time trader more is needed - nassim get writing the 2nd version!