The Skinny on Options: Abstract Applications

The Birthday Paradox

The Skinny on Options: Abstract Applications

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

What are the probabilities that two people in the same room have the same birthday? Specifically, how many people would it take to tilt the probabilities such that it’s a 50-50 shot between two people in the room having the same birthday and two people in the room not having the same birthday?

Today, we have a little fun answering that question. In the process, we learn that math’s reliability can be surprisingly strong with enough occurrences and that tastytrade studios are more of a statistical anomaly than we thought!

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