Convexity Snap

The Convexity Mindset

This exercise trains you to quickly identify asymmetric opportunities where you risk little to gain much - the essence of antifragile trading.

How to play: You'll see two trade offers. Select the one where the potential reward significantly outweighs the risk (better risk/reward ratio).

Game Rules:

• You start with 3 lives (hearts)
• Each wrong choice costs you 1 life
• Time gets shorter as you progress
• Losing a life gives you slightly more time
• Equal risk/reward counts as correct
• You can skip up to 3 trades per game

Why this matters in options:

• Options are about paying small premiums for large potential payouts
• Successful traders develop an instinct for positive asymmetry
• The market punishes bad risk/reward decisions
• You can be wrong often but still profitable with good ratios