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Offhand, it looks like you are using the wrong probabilities. Assuming your 45.52% of max winnings is correct (which I'm not sure it is), the remaining 54.48% would not be max loss if you are creating an iron condor. In fact, some of it would be profit (below max) and then zero before you get to...

Actually I already said this, but regardless its an important point. If you take a position at a B/D its almost always required. However, they pay for your training classes and give time to take the exam if you are coming from school, making it unnecessary to study/take the S7 beforehand.

I disagree, they look for intellect, drive and passion more so than a particular degree. There are so many finance majors recruited in the industry, heck my buddy was a management major. In reality, you're not going to draw on much of your studies in trading anyway. Either way, let's just...

Just curious, why does it matter to you?

I work in the industry, have recently gone through the process and so have many of my friends, and help recruit for the firm. Sure, its competitive, but if you think the only people getting jobs are math/engineering/CS majors you are mistaken. Most times, the degree is not nearly as important...

You're confusing my arguments, I was speaking about HFs and quantitative degrees. Most HFs do not require mathematics/CS background. On the other hand, yes quantitative backgrounds are well suited for Prop Firms (engineering, math, CS, etc). Although I can tell you from firsthand experience...

You don't need to be a math or CS major to get a job at a HF or Prop firm, it is certainly a path, but not the only one. I would recommend studying some Math and CS, but a major is not a requirement unless it is HFT or purely algorithmic. The second assertion is misleading. If you want a job...

This is one of the worst things I've read on this site. I'm glad the OP responded "Never"! Smart kid. To the OP: If you feel uncomfortable with saying which school you go to, could you list a band where it fits in, or at least just say whether it's a target school or not: Example for me...

Delta-neutral strategies can also make money from time decay.

Yes, that example is a pure arbitrage. There is no net position, you collect the .1 risk-free. And this absolutely happens in the OTC market. I have personally witnessed or been involved with this type of arb in FX Options and Rates Swaps. You need to be quick though, it's not something that...

There are two possible explanations, likely its a combination of both. First, Delta is not constant, it also has a rate of change (gamma). Therefore, the delta is only applicable for a small range around the current price. More importantly, there are 3 other factors in the price of an...

Definitely true.

Ok, I misunderstood your initial view, really you were playing the downside. So essentially you were banking on the fact that a rally would cause vol to come off and the vega gains would help to mitigate your delta exposure?

Of course there is theta, it's just like any other option... it just so happens that the underlying is a type of vol. It's similar reasoning as to why options on options have a theta.

Ok I get what you're saying now... but I would have thought you would have been hurt from the huge spot increase. Why don't you just sell vol as opposed to selling calls... thats what I don't get. Wouldn't you prefer to sell puts? That way you benefit from drop in vol and increase in index.

I don't think I'm following what you're saying... can you clarify?

ER is a step in the right direction. It's important to get something on your resume that you can leverage when interviewing for S&T positions. When you interview you can explain how it was interesting because it brought you closer to the markets, but you wanted a faster paced, risk managing...

Will people please just stop saying a CC is less risky than a NP... they are the same damn payoff. Limited upside with unlimited downside (fine it's not technically unlimited, just till the stock goes to zero, but that's pretty damn close). It doesn't matter whether its a CC and you own the...

Ok... well yes very true... but things like : +Underlying -C = -P is just a fact. It's synthetically the same, and if they are not in lock-step there is an arb possibility. So yes the market decides the price, but in part due to certain relationships.

Go Blues! :D