<r><URL url="http://www.bloomberg.com/apps/news?pid=20601087&sid=a8f8YwvIHkoM&refer=homethis"><LINK_TEXT text="http://www.bloomberg.com/apps/news?pid= ... r=homethis">http://www.bloomberg.com/apps/news?pid=20601087&sid=a8f8YwvIHkoM&refer=homethis</LINK_TEXT></URL> is interesting as p...

<t>QuoteOriginally posted by: psholtzGold is going to continue to rise, and the U.S. equities will continue to fall, until (at least) the Dow and gold reach parity. That means, 1 ounce of gold buys 1 share of the Dow index. Currently gold is still < $1,000 and the Dow is still over 10,000. They'll p...

QuoteOriginally posted by: quantquantquantCan anyone give me some advice on how competitive it is to be an option trader?Its extremely competitive, probably one of the most competitive jobs out there and the turnover rate is high.

What do you want to know? ref price = the atm price you set yr vol surface on. slope = slope of the tangent to the curve at atm point. call/put curve are the curvatures of the vol in the up (call) and down (put ) directions from atm point.

QuoteOriginally posted by: mityou are now 29, so you will start by 30, then you will be done by 32, then you only have 8 years of work until retiring by 40.Who retires at 40 these days?

I couldn't think of a worse place to work than a big 4 accounting house (except maybe accenture). Who cares if they're in the times top 100 places to work for.

Ive heard they are a poor mans Optiver

These tests are pretty easy its just like the optiver and co tests; quick arithmetic, 'logic' based questions, pattern recognition etc. the name of the game is speed.

How much capital can the strategy handle? what sort of returns does it generate? Surely you can ask for at least half of the profits you make on top of a reasonable salary (say 150k to start with) if they are this interested in it.

Yeah. It probably also means they want you to go.

<t>Why do you pay a cost for rebalancing your delta? You only buy more stock if it goes up, making all your old buys good buys and same with sells. Eg, stock is going up, you are buying more getting longer, you decide to 'hedge' your gamma so you are flat deltas again (say you sold 5k stock to do th...

<t>Why do you pay a cost for rebalancing your delta? You only buy more stock if it goes up, making all your old buys good buys and same with sells. Eg, stock is going up, you are buying more getting longer, you decide to 'hedge' your gamma so you are flat deltas again (say you sold 5k stock to do th...

<t>Yeah i bet there are several stocks that are realising a higher vol than the market implied vol so you could buy gamma, however this could stop at any moment. Also looking at vol spreads around the world, ie the vix was way lower than asian index vols a few weeks ago so could have put on a long u...

Vega is increasing with time to expiry and Gamma decreasing, so an obvious way would be long the 1 month options and short the longer term ones.

QuoteOriginally posted by: tsunamijonWhat are acceptable reasons for becoming a trader as opposed to a quant?Traders earn way more than Quants ever can. A decent options market maker can earn 500k after only a year or 2 trading exp