I still think it is weird how options pricing formulas don't take volume or market depth of the underlying asset into play, and how convenient it is to just lum

I still think it is weird how options pricing formulas don't take volume or market depth of the underlying asset into play, and how convenient it is to just lump all pricing anomalies into the "implied volatility" variable. Oh our neat formula has an increasingly large remainder, implied volatility! Ironically, LTCM founders made the most well known options pricing formula, and blew up selling their overpriced options to everyone they convinced to use their formula. Always remember that.