Please help me, option market making risk return, thanks

ironchef said:
Maybe you spoke too soon. :D
Just make sure you grab it. :thumbsup::thumbsup::strong::strong:
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I sincerely hopes he gets it, and btw legitimate OMM is NOT 'making allocation decisions' or 'taking on risk'. Best case scenario he's adding or subtracting to his hedges to adjust for delta changes.
 
No one is going to hand him the keys to run a desk/profit center by himself. Any job listing he saw was an entry level junior trader, electronic market maker position that will likely have him working the graveyard shift for an around-the-clock trading operation...which is perfectly fine for someone of his meager experience. So at best, he will be joining a team and will have limited responsibility starting out (e.g. handling delta hedges, managing and maintaining IV curves, monitoring the night position, etc.)

I have to say though, for a millennial with a low self-image about his people/interviewing skills he has pretty grand ambitions and seems willing to grind it out until he gets there.
 
destriero said:
My undergrad degrees are from UChicago.

Apparently the mods aren't going to do any house-cleaning so again, I am out of here.

I have nothing to do with Alex Wasilewski other than driving him off this site.

This st-trader clown is that Handley character.

https://www.elitetrader.com/et/search/9435158/?q=alex&o=date&c[user][0]=69453

Dean Handley is a RSO and has done numerous stints in prison. This place is becoming 4Chan.
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Didn't take you as the type to run a scam operation/website. But seems like some people here want to take you down. Best to keep a low profile and operate incognito.

I also went to undergrad U of Chicago. But that's all anyone needs to know.
 
76132 said:
In the mean time, I have an interview for an "execution" trader at a decent mutual fund company. That's gotta be more dead end than anything else? As at the end of the day I don't get to make any decisions, take on risk, manage portfolio, etc...
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%%
[a]NO doubt you could learn a lot/ learn levels there.......I sure would have a plan ''b''+ do. [c] 'cause i'm not cut out for working for someone else.[d]Dead end?? Actually sounds interesting, if you want to work for some else; your last line sounds like you may want to save /invest your own funds...........................................................................:caution::caution: , :caution::caution::caution::caution::caution::caution:
 
76132 said:
Yeah I plan on trying again but I get so bored talking about what classes I'm taking, what's my background, who's a good professor, where do I live, standing around in a circle and nodding my head, conversations about nothing, etc... Even without networking, I've learned a lot in Bschool so it hasn't been a complete waste. I've met traders at school, but it's always a bit weird reaching out to them, Hey, I know we just talked but can you pass my resume to someone in your firm, etc... Kinda makes it seem like the relationship is fake.

I'm going to try cold calling/emailing and reaching out to alumni for now to see if there are any hits and if doesn't work, I'll revisit my strategy. It's something done for banking recruitment so I am curious if it works for trading...
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If and when you land an OMM gig or join a new trading desk you should take a look at the fully automated curve fitting algo that my group and 20+ other OMM desks are currently utilizing to set their Trade Sheets. Here is a snapshot of what it looks like:

For a fixed skew:

View attachment 207347

For a floating skew with the Vol Path Slide:

upload_2019-8-18_11-29-39.png


You can tailor each IV curve's level of smoothness, variability, and evolution based on your product, market conditions, and personal preference. We currently have an S&P 500 group that uses the algo to update and generate 40+ curves as frequently as every second for all SPX, SPY, e-minis, and VIX futures option expirations. This includes all actively quoted serial, quarterly, and weekly contracts which they trade and monitor. If you're still managing and maintaining your IV curves manually by hand, you're operating at a significant disadvantage to groups using our curve fitter.

Here's the link to more info on the Dynamic Skew algo:

http://citystore.optionscity.com/storefront/market
 
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VolSkewTrader said:
If and when you land an OMM gig or join a new trading desk you should take a look at the fully automated curve fitting algo that my group and 20+ other OMM desks are currently utilizing to set their Trade Sheets. Here is a snapshot of what it looks like:

For a fixed skew:

View attachment 207347

For a floating skew with the Vol Path Slide:

View attachment 207348

You can tailor each IV curve's level of smoothness, variability, and evolution based on your product, market conditions, and personal preference. We currently have an SPX group that uses the algo to update and generate 40+ curves as frequently as every second for all SPX, SPY, e-minis, and VIX futures option expirations. This includes all actively quoted serial, quarterly, and weekly contracts which they trade and monitor. If you're still managing and maintaining your IV curves manually by hand, you're operating at a significant disadvantage to groups using our curve fitter.

Here's the link to more info on the Dynamic Skew algo:

http://citystore.optionscity.com/storefront/market
More...


Fixed Skew:

upload_2019-8-18_11-52-38.png
 
VolSkewTrader said:
If and when you land an OMM gig or join a new trading desk you should take a look at the fully automated curve fitting algo that my group and 20+ other OMM desks are currently utilizing to set their Trade Sheets. Here is a snapshot of what it looks like:

For a fixed skew:

View attachment 207347

For a floating skew with the Vol Path Slide:

View attachment 207348

You can tailor each IV curve's level of smoothness, variability, and evolution based on your product, market conditions, and personal preference. We currently have an S&P 500 group that uses the algo to update and generate 40+ curves as frequently as every second for all SPX, SPY, e-minis, and VIX futures option expirations. This includes all actively quoted serial, quarterly, and weekly contracts which they trade and monitor. If you're still managing and maintaining your IV curves manually by hand, you're operating at a significant disadvantage to groups using our curve fitter.

Here's the link to more info on the Dynamic Skew algo:

http://citystore.optionscity.com/storefront/market
More...
So third party be vendors upload their algos to Vela or do you work for Vela? This world is getting smaller and smaller. I just had the craziest story, but not sure if it will give away my identity...
 
"So third party be vendors upload their algos to Vela or do you work for Vela? This world is getting smaller and smaller. I just had the craziest story, but not sure if it will give away my identity..."


Don't work for Vela. I'm an independent trader who was one of the main beta tester/collaborators for this pricing algo, along with another complementary IV market data application called the VolLevels algo. They've both made mine and other trading desk operations a lot more efficient and profitable. Calibrating and adjusting your curves and trade sheets by hand all day is a complete waste of time, and an easy way to get "picked off".

You need to be a Metro trading platform user (so a Vela client) to currently upload these algos onto your server. The automated curve fitter algo has already replaced a couple of $75K - $100K earning manual curve/trade sheet maintenance workers. Fortunately, they were relocated to another part of the firm...better use of human capital.

PM me if you want to share your crazy story....I have plenty myself. Don't have to divulge your personal info. Our industry is like a small social club. Everyone has worked for the same firms, crossed the same paths.
 
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