Found 2 comments on HN
Before Black-Scholes gets bashed too hard, people should keep in mind that it's nearly 50 years old. Of course it's going to be outdated and inaccurate (as all models are).

It's worth reflecting on what options markets were like before Black-Scholes: a lot smaller and valued through qualitative, "over-the-counter" measures. More like handshake one-off business deals than liquid markets.

Regardless of how you feel about options trading or the role of liquidity in financial markets, Black-Scholes was an intellectual achievement and should be remembered as such, even as newer better techniques replace it.

To his credit, Ed Thorp also realized this at the same time as Black-Scholes but chose the money-management route and didn't feel the need to publish his strategies as papers for the academic community (and probably giving up the Nobel Prize in Economics).

My two favorite books on these people are Perry Mehrling's biography of Black and Ed Thorp's autobiography.

Fischer Black: https://www.amazon.com/Fischer-Black-Revolutionary-Idea-Fina...

Ed Thorp: https://www.amazon.com/Man-All-Markets-Street-Dealer/dp/0812...

SirLJ · 2018-11-16 · Original thread
"A Man for All Markets: From Las Vegas to Wall Street, How I Beat the Dealer and the Market" by Edward O. Thorp

https://www.amazon.com/Man-All-Markets-Street-Dealer/dp/1400...

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