Serving the Quantitative Finance Community
Typical day of an option trader?
Anybody? Any ideas? What does he look at? Is there a framework or a set pattern in which he follows?Thanks!
Typical day of an option trader?
he wakes up.. scratches his head, sells some gamma, goes to bed.. wakes up at 2pm, gets a sandwich, has a smoke. watches the close, hedges some gamma, goes for dinner, then goes and gets pissed out of his mind.. this goes on for about 5 days, then he buys the ATM straddle back for 50% of its value..
Typical day of an option trader?
i think this should be discussed in "off topic" forum !!
Typical day of an option trader?
QuoteOriginally posted by: sgelbhe wakes up.. scratches his head, sells some gamma, goes to bed.. wakes up at 2pm, gets a sandwich, has a smoke. watches the close, hedges some gamma, goes for dinner, then goes and gets pissed out of his mind.. this goes on for about 5 days, then he buys the ATM straddle back for 50% of its value..In my experience, the critical emotion experienced by the very best option traders I have known is boredom.Waiting for decay. Waiting for expiration. Waiting some more.Matthew
Typical day of an option trader?
ahhh boredom.. of course..the best traders (options or fp) put on a huge position (close to max VaR), then basically forget about it.
Typical day of an option trader?
sgleb:You're giving away all of my 'proprietary techniques!'
Typical day of an option trader?
Seriously, it depends on what your mandate is. 1) Market - maker:The firm's customers are going to get you into positions; your jobs is to figure out what you want to stay in or trade your way out of.2) Position trader:Your job is to decide how you should be positioned and then execute this plan.3) Hybrid: Many traders are mandated with some mix of 1 and 2.Any way you cut it, you must have a view on not only the absolute levels of vol but the skew and term structure. Secondly, you must understand how to best express that view. That's about it!
Typical day of an option trader?
QuoteOriginally posted by: sgelbahhh boredom.. of course..the best traders (options or fp) put on a huge position (close to max VaR), then basically forget about it.Yes, that's basically true. But occasionally they remember and laugh a little bit.Matthew
Last edited by mdubuque on November 16th, 2004, 11:00 pm, edited 1 time in total.
Typical day of an option trader?
yep.. pretty true.. gotta stick to your guns..
Typical day of an option trader?
Also there is a lot of just dull admin that will be filling the quieter part of your day
Typical day of an option trader?
arent dealing with attractive PA's smewhere in the timetable.....
Typical day of an option trader?
Yes if your systems suck.. you will be spending a lot of time doing silly PnL and position reconciliation.. (yuck).