1 It is estimated that anywhere from 75 to 80 percent of all
options held through expiration will indeed expire worthless.
Furthermore, it is estimated that only 10 percent or less of all options will ever be exercised.
2 "Option selling has unlimited risk” is all that most investors know about the concept. The term unlimited risk is enough to cause most investors to cross it off their list of potential investment strategies without further exploration.
1 Skin in the Game is about four topics in one: a) uncertainty and the reliability of knowledge (both practical and scientific, assuming there is a difference), or in less polite words bull***t detection, b) symmetry in human affairs, that is, fairness, justice, responsibility...
2 ...and reciprocity, c) information sharing in transactions, and d) rationality in complex systems and in the real world. That these four cannot be disentangled is something that is obvious when one has…skin in the game.
1 There are two major memory systems:
Working memory—like a juggler who can keep only four items in the air.
Long-term memory—like a storage warehouse that can hold large amounts of material, but needs to be revisited occasionally to keep the memories accessible.
2 Spaced repetition helps move items from working memory to long-term memory.
1 Surprisingly, your brain can also work on a problem even while you are sleeping and are not aware of anything. But it does this only if you concentrate on trying to solve the problem before falling asleep.
2 Students most commonly use the strategy of repeated reading—simply reading through notes over & over. We & other researchers have found that this passive & shallow strategy often produces minimal or no learning. We call this “labor in vain”.
1 I am learning to use mind maps so will try to illustrate the broad theme of the book with them.
Will post a complete mind map when I finish reading it.
2. Your memory is the glue that binds your life together; everything you are today is because of your amazing memory. You are a data collecting being, and your memory is where your life is lived. #memory