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Interesting! Let us know how it goes, and ideally provide a link to the wargaming AI so we can try it!

That said, I think buying out of the money volatility options is a very bad idea. Those options are extremely expensive financial products. They cost you a pile of money, up to 8% for every month you hold them. You will spend a lot of money each month and go bankrupt before the world goes down. VXX is calculated in strange ways, too. And finally but most importantly, you need to worry about counterparty risk. If you bought those products from Lehman Brothers just before the financial crisis, you might have had a claim, but it was worthless. Same about insurance companies and their re-insurers. A sufficiently disastrous catastrophic risk will bankrupt them, and they will pay out to no one.

As an economist I also like to remind people that the world and its tech stack has been on an exponential growth course since the industrial revolution, and is very likely to stay on it. Writing and reading mostly about catastrophic risk might bias you into worrying too much. Be aware of that.

The "catastrophic risk hedge" that is actually useful is the smarter prepper stack. You don't need water, but you need to be away from population centers. For water, have purification tablets and iodine tablets ready. Your home needs to be as self sufficient as can be (sfh on large parcel with spare solar panels, energy storage, water treatment, electric bikes, own greenhouse, starlink). And you need stuff you can trade in a catastrophic scenario. That meant physical gold in most of history, but now I'm not sure about gold at all because the gold price is very high. Actually useful stuff for trading in (like surplus purification tablets, the now very cheap solar inverters, surplus starlink dishes, or surplus unperishable food) is better than expensive gold.

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