Mansoor: Retail traders prefer real-world events over complex option deltas
Tarek Mansoor · How Kalshi Built a $2 Billion Prediction Market · Sourcery with Molly O'Shea · Feb 28, 2025 · at 28:41
Tarek Mansoor, co-founder of Kalshi, explains the core thesis behind founding an event contract exchange instead of a traditional options brokerage.
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“If the institutions don't care as much as we thought about like all these complicated financial instruments, then retail definitely cares way less. So the overall, I think that the amount of interest or caring about events is actually pretty large. And so, because yeah, people don't think like, hey, I think this option should be trading at, you know, four delta instead of five delta. Like they think, I think Brexit is going to happen, right? Like that's how people think naturally.”
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