ITT: ask a professional options trader anything

ITT: ask a professional options trader anything

>age
24
>degree
Financial math
>salary
200k a year
>do you have any stock tips
99% of people don’t have edge in stock trading and should probably just buy low risk passive index trackers/bonds

black or scholes?

I don’t use black scholars. I use something with very similar results and I can’t tell you what it is

>Professional options trader

You mean someone with a job that will be automated yesterday? All you do is use your prop model to estimate an option's price and buy/sell accordingly. You having a job tells me a lot about the inefficiencies of the company you work for. Also, you don't make 200k.

Anyway, if you people want to actually learn something from somebody in finance whose job requires them to do more than whatever their model asks of them, ask away.

>Job
M&A Analyst
>Age
22
>Degree
Finance, top 5 business school
>Salary
70k + bonus
>Investing tips
3% of your folio in crypto, research the other 97% percent.

Honestly the only advice I would give is invest in the volatility index (VIX).
Google it and earn some dough.

Will the SP500 open lower or higher than friday.

Explain in a simple way what are options.

Where did you learn how to trade them?

>invest in the VIX

You do understand that the VIX isn't some stock you just buy, right?

The job is largely automated but there are still traders and will be for the next few years.

I do make 200k. That’s relatively normal, you can check it on Glassdoor.

>M&A analyst

What happens if you don’t make money? Oh right nobody will no because you don’t actually take part in the markets.

Don’t do this. The market knows much much more than you do.

A call (put) option with strike K gives you the right but not obligation to buy (sell) the underlying stock at price K at or before expiration date by exercising the option.

...

Also I will add to the automation thing:

There was a company that traded options completely automated. They were called timber hill. They recently shut down their options trading division. Clearly options trading is not quite ready for automation.

>99% of people don’t have edge in stock trading and should probably just buy low risk passive index trackers/bonds
love all the professions that teach their students you can't buy at a discount. thanks kiddo for paying my premiums

>premiums

Oh I meant things like Vanguard, passive funds or ETFs. Actively managed funds are a dying breed.

Whats the best way to exploit the market when things go bad? (War, Depression, Bot Errors) And when is the best time to cash out (before a depression)

the normie Bog market is over, active management is going to be the only way to survive the next 15 years

question OP, I know you guys are hardworking in terms of monitoring your portfolios but I just want to know how is like your social life, sex life, family life ... does being pro options trader affects that ? I'm currently planning to become much more of an programmer guy on an quant-hedge fund, and I am scared that my social life will be like over if I focus on my career

GARCH models?

I work about 50 hours a week and don’t do any work outside that, so I’m pretty fine in that department. Imagine you will be mostly the same.

Nope

Bump

What is your bread and butter strategy? (You don't need to go into details)

Buy options for below what they are worth and sell options for more than what they are worth

Very insightful. Never heard that one before.

If you’re being sarcastic, then you’re thinking about things the wrong way. That’s the only way to make money.

ass or tits

Bum.p

I might be wrong but some pretty smart people make markets for options. So there are no consistent mispricings.

I don't like your answer on automation.

Is the entire industry not automated? Do physical people actually price these options now a days?

You guys do no automation?

There are smart people making markers, and there are less smart people sticking out orders (aka customers).

The industry is automated but there are still traders behind the wheel. There aren’t any companies where traders are obsolete though. The only one that tried that failed.

Do you use the black cox model?

Thoughts on HFT? I have a couple friends who work at Jane Street/HRT making a fuckload and it makes me wish I went to a better school. Could you explain with a few reasons why you don't think options trading can be fully automated at some point?

>thoughts on HFT

It’s how stock is traded nowadays. It’s obviously good.

>explain why options trading can’t be automated

It possibly can be at some point. Essentially, options trading is a game. It’s a game where the level of complexity is huge, much more so than stock trading. So it’s a long time until it gets automated to the extent that a trader behind the wheel isn’t necessary.

>passive funds
Opinion disregarded. Enjoy getting raped by algos on the way down.

Lol. Humour me as to how a passive fund will be “raped” by “algos”.

edge being networking that allows you to trade with insider knowledge essentially?

Nah. Edge as in being faster or smarter than the competition. If you think you have better knowledge of a company than the market you better have some good reason to believe so.

Isn't that gambling? Or are binary options and options not the same thing?

what is your success rate? how much would you charge for your real time alerts?

please get me out of poverty Veeky Forums bro

They’re different yes.

You mean you are a nobody with a job that has been automated for like 15 years?
Please..

Anyway, if you people want to actually learn something from somebody in finance whose job requires them to do more than whatever simple M&A 101 book tells them to do, ask away.

>Job
CFO of a large international company

>Age
21

>Degree
Master in economics and business models

>Salary
€ 300.000 excl bonusses

Larp harder friend