I just graduated with my Ph.D. in operations research and have been working for a few months in a front office position at an energy prop shop.This is a temporary position with a competitive base salary no benefits or bonus, call it an internship on steroids.The company is in transition right now with new management and possibly change in ownership and so rather than offering a permanent position upon completionof my contract they will offer to extend my contract for another 6 months until the uncertainty has (hopefully) cleared.In the meantime I dug up a position in R&D at a well known analytical software company. The position is actually interesting, company stable, and benefits very good.I have work experience in the field and over time might be able to become an independent consultant. I came up with that thought to compensate for the limited upside of the R&D position. I think I should be sticking with the energy position as (one of) the points of going for the Ph.D. was to get into that field. I would appreciate the input from the people on this site.

I think what we have here is a classic example of Real option theory.The prop ship gig contains 3 useful options which may turn out to have value at expiration:1: They offer a real job2: They don't offer but you have 6 months experience close to the money. Opinions vary about the utility of experience in prop ships, but the average is pretty good.3: Someone offers you a good job whilst employed at the PS.I reject your analysis of the analytics outfit for several reasons:1: No one is all that stable these days. Actually they never were. I'm old enough to be your father and although that's old it's not that old, and I've seen household names die more than enough.2: It actually doesn't matter if they are stable. What matters is the stability of your job. Successful "stable" firms every so often re-focus, or restructure or get bought, or buy another outfit.3: Yes, there is a possible option later on to be a consultant. That is true in all lines of work, most people aren't consultants, there is a reason for that. Do you even want to be a consultant ?Forget the fact that you invested 4-5 years in your PhD, it's gone, and it ain't coming back. You are where you are. Your past bought you a one way ticket to where you are.If the R&D is the best option looking forward then take it.You have not shared your risk aversion function ?Do you have dependents ? Big debts ? In my experience 90% of freshly minted quants have no huge reason to fear a period of seriously compromised income.But you may be in the 10%, if so the R&D could make sense.Because I'm a cynic, I'd counsel you to think hard and long about whether the "intern" position is not 100% the real story.Maybe they want some grunt work done cheap ? I know far too little to assign a probability here, but it does happen.It's also worth allowing for the fact that you're a newbie, and thus you don't have any good way of evaluating what is being said by either offer.

thank you for your thoughtful response.i think it is ok for me to take the risk as i don't have major obligations.the prop shop is a good company, well respected in the industry.

QuoteOriginally posted by: iconthe prop shop is a good company, well respected in the industry.The same holds true for Bear Stearns, Lehman Brother before they went belly up.

Stay with the Prop energy is a bit off balance right now, but you can always move to a super major if need be.However, I think the bit about being used is a real possibility.

thanks folks, i'll take that into consideration.