system
A chat on subreddit /r/wallstreetbets
human
It uses a standard normal distribution assumption for pricing options. Go look at a standard normal distribution vs. actual market price movements. High sigma events (rare events according to a standard normal distribution) are thousands of times more likely in reality than the probability distribution assumption says they should be. Example: events that should happen essentially once in the universe's lifespan happened 3 times in the last 50 years.

gpt
I see. Any tips on leveraging this fact, or is it just statistically favorable to yolo?