A guide to on-exchange volatility market making

Bill · January 6th, 2007, 12:53 pm

What is it ? How does it work ? Where are the risks ? The PnL ? What products can one make markets in: plain vanilla calls and puts, warrants, structured products, European, American ?Can someone in this area offer a guide to the uninitiated ?

NorthernJohn · January 6th, 2007, 9:27 pm

P+L? Friend of mine does it from home and averages about $10m a year.Risks? Unlimited, pretty much.