The Black Shoals Model and the Bell Curve

All options models and really a lot of financial models are based off of, unfortunately, what was sound logic at the time. The first thing is this idea that there's a totally random walk that happens on equity prices which we know is actually not the case. So when stocks are crashing 6% and then the next day 5%, clearly was not random. And so most of the models that are around pricing and expectation and volatility, all baked in options pricing models assume a normal or semi normal distribution will just say normal for the sake of the start. But unfortunately, again, like, it's not the cases. Markets move way further way faster than everyone expects.