A few quotes from the paper
“This is a unique historical example which shows that sophisticated hedging practices were not academically led”
“ there is `widespread ignorance concerning the history of derivatives' "
“Pricing techniques in financial markets have been systematically developed in practice long before the academic publication of related formalized models (Rutterford 2004). And sophisticated option trading was possible long before the perfecting of the BSM pricing model in the 1970s on the basis of a knowledge spontaneously developed practical form in the everyday experience of market participants.”
“Higgins does not use standard deviation (or variance) as a proxy for market price dispersion but another similar measure which is close to the so-called average deviation.”
“Option markets existed and flourished long before the publication of Black and Scholes’ famous paper in 1973.”
Higgins was an option trader in London and published an interesting booklet in 1896. More people; traders and academics should spend more time to dig out and read the old sources.