He says you want an "active position" where you "benefit from rise [in rates]."
Rates went down dramatically. In fact, they were cut almost in half. He was completely wrong on this prediction over the last 5 years. Maybe he was early - doubtful - but over a 5 year time frame that's as good as wrong.
but he has an options position which fixes his maximum loss at some known value
If you are long an option then it fixes your maximum loss at some known value. If you are short an option, then your maximum loss is infinity.
But let's be real. Even if you are long an option, that option will expire. Over 5 years you probably rolled that option a minimum of a few times and more likely several dozen times. Almost every time you would've experienced a loss.
Why is it bad to admit that he Taleb was just spectacularly wrong on this position? (Just like 99% of other professional investors that expected rates to spike up dramatically from 2010 to 2015).
Rates went down dramatically. In fact, they were cut almost in half. He was completely wrong on this prediction over the last 5 years. Maybe he was early - doubtful - but over a 5 year time frame that's as good as wrong.
but he has an options position which fixes his maximum loss at some known value
If you are long an option then it fixes your maximum loss at some known value. If you are short an option, then your maximum loss is infinity.
But let's be real. Even if you are long an option, that option will expire. Over 5 years you probably rolled that option a minimum of a few times and more likely several dozen times. Almost every time you would've experienced a loss.
Why is it bad to admit that he Taleb was just spectacularly wrong on this position? (Just like 99% of other professional investors that expected rates to spike up dramatically from 2010 to 2015).