Dynamic Hedging (quasi-textbook) is simply one of the greatest trading/markets books ever written. How much real world trading experience do actually have? It is laced with crucial doses of scepticism toward academic finance and offers patches and work-arounds for the practitioner confronted with a messy uncertain reality (a traders survival kit).

I don't believe you have read the Black Swan or at least understood the work when you make statements such as: "Specifics are always unexpected, like when 21-42-53-26-11 wins the lottery." One of Talebs' stands is against the use of casino/roulette/game statistics in finance and economics - the mild type where the generator reveals its properties as the sample size increases!

Again your point about insurance companies is covered. House fires, stolen cars etc are all normally distributed. This is NOT the wild randomness Taleb is speaking of it is mild, like your lottery example. The generator is stable the tails have a negligible impact on the mean.

Just read the book BEFORE you make comments because you are annoyed he doesn't like economists (particularly investment banking marketing type economists).