Blair Hull's journey from successful blackjack player to options trading pioneer showcases the value of seeking edges in different fields.
The Black Monday crash of 1987 highlighted the unpredictability of financial markets and the impact of investor psychology on market movements.
Deep dives
Black Monday: The Stock Market Freefall
Black Monday in 1987 saw the Dow Jones plummet by 22% in a single day following a week of losses, setting a record in financial history. Analysts expected a rebound, but chaos ensued from the opening bell with a downward spiral despite some positive economic indicators. Investor psychology shifted drastically from optimism to pessimism, marking the start of a bear market.
From Blackjack to Wall Street
Blair Hall transitioned from a mathematical degree and military background to becoming a successful blackjack card counter. Joining Al Francesco's team, he mastered the card counting strategy and the complexities of multiple decks. The team's success relied on systematic tests for competency and innovative communication systems within the casinos.
Market Mastery and Innovation
Blair Hall's journey continued into the financial markets, applying his edge-seeking mentality from blackjack to options trading. His development of a sophisticated option model resembling the Black-Scholes model led to significant success. Transitioning to trading full-time, he founded Hull Trading Company, focusing on technology-driven and systematic trading strategies that attracted Goldman Sachs's acquisition.
Blair Hull played on the original Big Player blackjack team in the 1970s. He played with Al Francesco, Ken Uston, and ran into other pioneers of the game including Keith Taft. The Francesco teams were the subject of the book "The Big Player". After blackjack Blair moved into the financial markets where he used his proprietary options strategies to turn $25,000 into millions. Blair talks about his life searching for edges, and the lessons he learned.