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Wall Street Oasis » Blogs » LaFemmeFinancière's blog
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What Everybody Ought To Know About Trading Options
 

LaFemmeFinancière's picture
LaFemmeFinancière
      HF
 
(Senior Baboon, 242
 
Points)
 on 11/27/12 at 10:30pm
VanillaOptions.jpg

Curious about Options? Wondering if the Greeks are the people fighting about austerity packages or that frat which always had hot girls at their parties? . What if your interviewer asked you what it means to Long a put or write a call? Let's take a look at the fundamental basics of options that you should know as you gear up for recruiting.

Options are everywhere. Every decision you make and risk you assume is a derivative that is being priced, bought or sold by somebody. How do you decide what school to attend, where to live, what job to take? It may not seem like these decisions contain embedded options, but each has a level of risk, reward and cost associated with it. Each has a variable range of favorable or unfavorable outcomes that may or may not be within your control.

Consider purchasing a piece of artwork from an unknown artist as an investment. The initial outlay is relatively small and the probability that the artist will be recognized is relatively slim. However, if the artist does become famous, your small initial investment may appreciate significantly. This is a call option. The investor participates in the potential upside in exchange for a small initial financial payment.

Call Option (Buyer or holder): The buyer of a call option has the right (but not the obligation) to buy a security(St) at a pre-specified time (expiration) and price (strike=K) . The buyer pays a fee (premium=P) to the seller to receive this right. Buyer's payout = (St-K)-P

Call Option (Seller or writer) : The seller of a call option has the obligation to sell a security(St) at a pre-specified time (expiration) and price (strike=K). The seller receives a fee (premium=P) from the buyer to take on this obligation. Seller's payout = -(St-K)+P

*Calls provide the buyer and seller full exposure to price movements above the strike. Like buying a speculative stock or that piece of artwork by the unknown artist, the initial outlay (premium) is small relative to the potential gain.

Put Option (Buyer or holder) : The buyer of a put option has the right (but not the obligation) to sell a security(St) at a pre-specified time (expiration) and price (strike=K). The buyer pays a fee (premium) to the seller to receive this right. Buyer's payout = (K-St)-P

Put Option (Seller or Writer) : The seller of a put has the obligation to buy a security(St) at a pre-specified time(expiration) and price(strike=K). The seller receives a fee (premium=P) from the buyer to take on this obligation. Seller's payout = (K-St)+P

*Puts provide the buyer and seller full exposure to price movements below the strike. Like purchasing insurance the premium paid provides protection from losses due to declining prices.

The difference between European and American Options include :
European Options may be exercised only on the expiration date
American options may be exercised at any time before expiration. (We will be focusing on American options)

Examples:
Let's say the investor paid a $2 premium and is long a call on NFLX(netflix), Strike(K) = $85 expiration Dec 21 2012. If, at expiration NFLX is at $88. The investor would have made (St-K)-P = ($88-$85)-$2 = $1.
*Note that in the real world there are 100 shares per option contract so do you see what the $1 profit translates into.

Remember that the maximum loss for a buyer of a call option is the premium paid and the maximum gain is unlimited. The reverse is true for the seller of a call option.

Homework Q1) If you paid $2 premium and are long the put on NFLX, K=$81 expiration Dec 21 2012. If, at expiration NFLX is at $78. How much did I make or lose? (FYI you are a put buyer here)

Remember that the maximum gain for a buyer of a put option equals strike less the premium if the stock price goes to zero. The maximum loss is the premium paid.

Here are some simple shorthand descriptions to reflect the option's risk profile.
ATM: No this is not your father/Sugar Mommy/Sugar Daddy!
At the Money options simply mean the Strike price is he same as the spot/stock price (K=St)

ITM Calls: In the money calls are when the strike price is below the the spot price (K TM Puts: In the money puts are when the strike price is above the the spot price (K>St)

OTM Calls : Out of the money calls have strike price above the spot price (K>St)
OTM Puts: Out of the money puts have strike price below the spot price (K

Q2a) In the NFLX long call example, was it ATM , ITM or OTM
Q2b) Is HW Q1 ATM, ITM or OTM

So what happens if we buy a call and sell a put at the same time? This is called a Combo. Depending on the strike prices used in the combo, our initial cash outlay (or premium will change). If stock is trading at $20 and we purchase the ITM call at Strike (K) = $15 and sell the OTM K=$15 put, we have locked in the right and obligation to purchase the stock at $15. Since the stock is currently trading at $20, this combo must be worth $5 to us. This concept is called Parity.

Put-Call Parity
Combo = Call - Put (C-P)
Parity = Stock - Strike (St-K)
carry= Interest - Dividends

***** COMBO = PARITY + CARRY *****
C-P = (St-K)+ (Int-dvd)
By rearranging the above equation, we can solve for calls and puts in relation to each other.
C= (St-K) + (Int-dvd) + P

HW Q3) What is the value of parity for the put given the following?
Call (C) = 1.01 , Put (P) = 3.52, Stock(S) = 37.45, Strike(K)= 40, Interest(int)=0.04 and Dividends(dvd)=0

HW Q4) If the spot of an underlying asset increases, how does it affect the value of a call option vs that of a put option ? (*Hint, if St increases what happens to P & C)

HW Q5) Assume two call options have the same underlying security and the same strike but different expirations. Which would have a higher premium? (The one with expiration in 6mths or 1 year?)

If you understood the material post your answers to Q1-Q5 below and I'll be happy to reveal the answers.

If you are an options whizz give the others a chance to learn as Practice makes perfect!

**For more advanced Options Theory, Check back in next Tuesday as we take a look at the Option Greeks (Delta, Gamma, Theta, Vega and Rho)

~~ Fortune favours the brave ~~
My WSO Blog
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Tags:
  • call options
  • BB investment banking sales and trading
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Comments

rockstarlive's picture

1) $1 2)a.ITM

rockstarlive
     
 
(Senior Monkey, 69
 
Points)
 on 11/26/12 at 7:57am

1) $1
2)a.ITM
b.ITM
3)2.55
4)Put value decreases, call value increases
5)1 yr because of theta decay

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Mr.Saxman's picture

Love this! I am considering

Mr.Saxman
      IB
 
(Senior Baboon, 235
 
Points)
 on 11/28/12 at 12:06am

Love this! I am considering to start trading options (never traded anything before) starting next month. Definitely will follow your series

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dest149's picture

Can you explain the last part

dest149
      ST
 
(Senior Baboon, 191
 
Points)
 on 11/28/12 at 12:06am

Can you explain the last part of the parity? I understand everything else no problem, but I don't understand the part where the parity has to be worth $5 to us. Can you go a little more in depth here?

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gammaovertheta's picture

Mr.Saxman: Love this! I am

gammaovertheta
      ST
 
(Senior Orangutan, 429
 
Points)
 on 11/28/12 at 1:04am
Mr.Saxman:

Love this! I am considering to start trading options (never traded anything before) starting next month. Definitely will follow your series

Read Natenberg before you make that decision - don't base it off an abbreviated and oversimplified series like this

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larasing's picture

... not another presentation

larasing
      AM
 
(Senior Monkey, 76
 
Points)
 on 11/28/12 at 1:08am

... not another presentation deck to summer interns please...

See my WSO blog

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LaFemmeFinancière's picture

dest149: Can you explain the

LaFemmeFinancière
      HF
 
(Senior Baboon, 242
 
Points)
 on 11/28/12 at 3:06am
dest149:

Can you explain the last part of the parity? I understand everything else no problem, but I don't understand the part where the parity has to be worth $5 to us. Can you go a little more in depth here?

Sure, Let's take a look at the current stock price as seen above in the Put-Call Parity explanation. Since Parity= Stock - Strike and the stock price is $20, Strike Price(K) is $15, Parity is $5. Are you confused about the ITM/OTM parts?

~~ Fortune favours the brave ~~

My WSO Blog

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LaFemmeFinancière's picture

gammaovertheta: Mr.Saxman:

LaFemmeFinancière
      HF
 
(Senior Baboon, 242
 
Points)
 on 11/28/12 at 3:10am
gammaovertheta:
Mr.Saxman:

Love this! I am considering to start trading options (never traded anything before) starting next month. Definitely will follow your series

Read Natenberg before you make that decision - don't base it off an abbreviated and oversimplified series like this

Absolutely read Sheldon Natenberg's book! Brilliant work!
http://www.amazon.com/Option-Volatility-Pricing-St...
In fact having an understanding of the basics of options will certainly help when you read his book

~~ Fortune favours the brave ~~

My WSO Blog

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redrut's picture

Am an options market maker -

redrut
     
 
(Senior Baboon, 182
 
Points)
 on 11/28/12 at 3:14am

Am an options market maker - if you are a retail investor or a sole investore, DONT trade options, you haven't got the pockets to make the strategies work.

Furthermore, aside from german equities and a few index options, bid offer spreads are too wide

1percentblog.com

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LaFemmeFinancière's picture

redrut: Am an options market

LaFemmeFinancière
      HF
 
(Senior Baboon, 242
 
Points)
 on 11/28/12 at 3:31am
redrut:

Am an options market maker - if you are a retail investor or a sole investore, DONT trade options, you haven't got the pockets to make the strategies work.

Furthermore, aside from german equities and a few index options, bid offer spreads are too wide

What advice do you have for the students who want to be brokers/market makers or trade for example fx/equity options at a large Inv. bank's trading desk?

~~ Fortune favours the brave ~~

My WSO Blog

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LaFemmeFinancière's picture

Mr.Saxman: Love this! I am

LaFemmeFinancière
      HF
 
(Senior Baboon, 242
 
Points)
 on 11/28/12 at 3:32am
Mr.Saxman:

Love this! I am considering to start trading options (never traded anything before) starting next month. Definitely will follow your series

Did you do the homework qtns?

~~ Fortune favours the brave ~~

My WSO Blog

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dest149's picture

- deleted

dest149
      ST
 
(Senior Baboon, 191
 
Points)
 on 11/28/12 at 9:03am

- deleted

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dest149's picture

LaFemmeFinancière: dest149:

dest149
      ST
 
(Senior Baboon, 191
 
Points)
 on 11/28/12 at 9:09am
LaFemmeFinancière:
dest149:

Can you explain the last part of the parity? I understand everything else no problem, but I don't understand the part where the parity has to be worth $5 to us. Can you go a little more in depth here?

Sure, Let's take a look at the current stock price as seen above in the Put-Call Parity explanation. Since Parity= Stock - Strike and the stock price is $20, Strike Price(K) is $15, Parity is $5. Are you confused about the ITM/OTM parts?

Right I understand the math of it. I guess I what I was trying to ask is what a parity actually is. Not how it is calculated. For example, the parity is $5, but what does that $5 signify? Is that profit per option so you get $500 (since 100 shares/contract) is it a sort of premium that you would implement if you think the shares are going no where? Yes I understand ITM and OTM, although I am not sure what the point of buying ITM is....

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rockstarlive's picture

What are the answers though?

rockstarlive
     
 
(Senior Monkey, 69
 
Points)
 on 11/28/12 at 2:46pm

What are the answers though?

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Revsly's picture

dest149: LaFemmeFinancière:

Revsly
      ST
 
 
(King Kong, 1,706
 
Points)
 on 11/28/12 at 4:08pm
dest149:
LaFemmeFinancière:
dest149:

Can you explain the last part of the parity? I understand everything else no problem, but I don't understand the part where the parity has to be worth $5 to us. Can you go a little more in depth here?

Sure, Let's take a look at the current stock price as seen above in the Put-Call Parity explanation. Since Parity= Stock - Strike and the stock price is $20, Strike Price(K) is $15, Parity is $5. Are you confused about the ITM/OTM parts?

Right I understand the math of it. I guess I what I was trying to ask is what a parity actually is. Not how it is calculated. For example, the parity is $5, but what does that $5 signify? Is that profit per option so you get $500 (since 100 shares/contract) is it a sort of premium that you would implement if you think the shares are going no where? Yes I understand ITM and OTM, although I am not sure what the point of buying ITM is....

The whole point is that in a delta neutral portfolio, puts and calls are the same thing. As a corollary, the implied vol for the same strike therefore must be the same irrespective of whether it is a put or a call. With some deviation for american options or assets with dividends, of course.

Jack: They’re all former investment bankers who were laid off from that economic crisis that Nancy Pelosi caused. They have zero real world skills, but God they work hard.
-30 Rock

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redrut's picture

Advice for getting into

redrut
     
 
(Senior Baboon, 182
 
Points)
 on 11/29/12 at 2:00am

Advice for getting into options on a inv bank market making or broking desk...I work for a smaller market maker and we play in listed derivatives only.

Derivatives volumes are heavily down, there isn't as much money in the system as there used to be, the overload of brokers and mkt makers have tightened prices quite signficiantly. It's a very cyclical business where the gov bond desk is having a great year but the Equities is doing F all.

My advice, steer clear of single stocks derivs desks, closing down at a fast rate. Short end used to be great but with interest rates bounded to 0 for the considerable future, there may be less reason for trades to be put on, so less edge for a market maker.

For a market maker, practice your short and medium memory skills. Not joking at all! We quote every 40 seconds for strategies (I am on the govt bond desk) over 10 products each with for active months. We have to know whats trading, how much of it, whats the current market position - you can use software aids to help but you need to be quick with pricing so you need a good recall of numbers.

Brokers - I can't comment, interdealer brokers seem to be earning a lot more than you would think considering they take no risk but if you want to use your brain, this is probably not the job for you.

Finally be aware that more complicated derivatives may see vastly reduced markets in the future while you should keep an eye on the swaps/swaptions market as it slow comes on exchange.

Sorry I have nothing specific

1percentblog.com

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LaFemmeFinancière's picture

rockstarlive: What are the

LaFemmeFinancière
      HF
 
(Senior Baboon, 242
 
Points)
 on 11/29/12 at 5:28am
You must be signed in to read advice below.
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Connecting helps us build a vibrant community. We'll never share your info without your permission.

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~~ Fortune favours the brave ~~

My WSO Blog

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rockstarlive's picture

LaFemmeFinancière: rockstar

rockstarlive
     
 
(Senior Monkey, 69
 
Points)
 on 11/29/12 at 8:22am
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LaFemmeFinancière's picture

rockstarlive: LaFemmeFinanc

LaFemmeFinancière
      HF
 
(Senior Baboon, 242
 
Points)
 on 12/1/12 at 6:19am

~~ Fortune favours the brave ~~

My WSO Blog

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LaFemmeFinancière's picture

dest149: LaFemmeFinancière:

LaFemmeFinancière
      HF
 
(Senior Baboon, 242
 
Points)
 on 12/1/12 at 6:32am

~~ Fortune favours the brave ~~

My WSO Blog

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dest149's picture

LaFemmeFinancière: You don't

dest149
      ST
 
(Senior Baboon, 191
 
Points)
 on 12/2/12 at 1:38am
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gammaovertheta's picture

LaFemmeFinancière: You don't

gammaovertheta
      ST
 
(Senior Orangutan, 429
 
Points)
 on 12/2/12 at 3:18pm
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snakeplissken's picture

This is a great post and so

snakeplissken
      CF
 
 
(Orangutan, 330
 
Points)
 on 12/5/12 at 9:14pm

Remember, once you're inside you're on your own.
Oh, you mean I can't count on you?
No.
Good!

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meabric's picture

redrut: Am an options market

meabric
     
 
(Senior Baboon, 212
 
Points)
 on 12/7/12 at 1:19pm
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motionfx's picture

There's a problem with the

motionfx
      IB
 
 
(Senior Chimp, 26
 
Points)
 on 12/8/12 at 12:44am
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SirTradesaLot's picture

motionfx: There's a problem

SirTradesaLot
      O
 
 
(Senior Neanderthal, 4,498
 
Points)
 on 12/8/12 at 1:09am

Turbo leverage for capital explosion -- BD Capital

My WSO Blog

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motionfx's picture

SirTradesaLot, yes you are

motionfx
      IB
 
 
(Senior Chimp, 26
 
Points)
 on 12/8/12 at 1:24am
  • 0
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The Company is not to be considered to be an employer with respect to your use of the Web Site and the Company shall not be responsible for any employment decisions, for whatever reason made, made by any entity posting jobs on the Web Site.

THE COMPANY DOES NOT WARRANT THAT THE WEB SITE WILL OPERATE ERROR-FREE OR THAT THE WEB SITE AND ITS SERVER ARE FREE OF COMPUTER VIRUSES OR OTHER HARMFUL MECHANISMS. IF YOUR USE OF THE WEB SITE OR THE MATERIAL RESULTS IN THE NEED FOR SERVICING OR REPLACING EQUIPMENT OR DATA, THE COMPANY IS NOT RESPONSIBLE FOR THOSE COSTS.

THE WEB SITE AND MATERIAL ARE PROVIDED ON AN "AS IS" BASIS WITHOUT ANY WARRANTIES OF ANY KIND. THE COMPANY, TO THE FULLEST EXTENT PERMITTED BY LAW, DISCLAIMS ALL WARRANTIES, WHETHER EXPRESS OR IMPLIED, INCLUDING THE WARRANTY OF MERCHANTABILITY, FITNESS FOR PARTICULAR PURPOSE AND NON-INFRINGEMENT. THE COMPANY MAKES NO WARRANTIES ABOUT THE ACCURACY, RELIABILITY, COMPLETENESS, OR TIMELINESS OF THE MATERIAL, SERVICES, SOFTWARE, TEXT, GRAPHICS, AND LINKS.

Disclaimer of Consequential Damages.

IN NO EVENT SHALL THE COMPANY, ITS SUPPLIERS, OR ANY THIRD PARTIES MENTIONED ON THE WEB SITE BE LIABLE FOR ANY DAMAGES WHATSOEVER (INCLUDING, WITHOUT LIMITATION, INCIDENTAL AND CONSEQUENTIAL DAMAGES, LOST PROFITS, OR DAMAGES RESULTING FROM LOST DATA OR BUSINESS INTERRUPTION) RESULTING FROM THE USE OR INABILITY TO USE THE WEB SITE AND THE MATERIAL, WHETHER BASED ON WARRANTY, CONTRACT, TORT, OR ANY OTHER LEGAL THEORY, AND WHETHER OR NOT THE COMPANY IS ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

Links to Other Sites.

The Web Site may contain links to third party web sites. These links are provided solely as a convenience to you and not as an endorsement by the Company of the contents on such third-party Web sites. The Company is not responsible for the content of linked third-party sites and does not make any representations regarding the content or accuracy of materials on such third party Web sites. If you decide to access linked third party Web sites, you do so at your own risk.

No Resale or Unauthorized Commercial Use.

You agree not to resell or assign your rights or obligations under these Term of Use. You also agree not to make any unauthorized commercial use of the Web Site.

Limitation of Liability.

The aggregate liability for the Company to you for all claims arising from the use of the Materials is limited to $1.

Termination.

The Company reserves the right, at its sole discretion, to pursue all of its legal remedies, including but not limited to immediate termination of your registration with or ability to access the Web Site and/or any other service provided to you by the Company, upon any breach by you of these Terms and Conditions or if the Company is unable to verify or authenticate any information you submit to the Web Site registration with or ability to access the Web Site.

Indemnity.

You agree to defend, indemnify, and hold harmless the Company, its officers, directors, employees and agents, from and against any claims, actions or demands, including without limitation reasonable legal and accounting fees, alleging or resulting from your use of the Material or your breach of the terms of these Terms and Conditions. The Company shall provide notice to you promptly of any such claim, suit, or proceeding and shall assist you, at your expense, in defending any such claim, suit or proceeding.

General.

The Company makes no claims that the Materials may be lawfully viewed or downloaded outside of the United States. Access to the Materials may not be legal by certain persons or in certain countries. If you access the Web Site from outside of the United States, you do so at your own risk and are responsible for compliance with the laws of your jurisdiction. These Terms and conditions are governed by the internal substantive laws of the State of New York, without respect to its conflict of laws principles. Jurisdiction for any claims arising under this agreement shall lie exclusively with the state or federal courts within New York, New York. If any provision of these Terms and Conditions are found to be invalid by any court having competent jurisdiction, the invalidity of such provision shall not affect the validity of the remaining provisions of these Terms and Conditions, which shall remain in full force and effect. No waiver of any term of these Terms and Conditions shall be deemed a further or continuing waiver of such term or any other term. Except as expressly provided in additional terms of use for areas of the Web Site a particular "Legal Notice," or Software License or Material on particular Web pages, these Terms and Conditions constitute the entire agreement between you and the Company with respect to the use of Web Site. No changes to these Terms and Conditions shall be made except by a revised posting on this page.

PRIVACY POLICY

The Company recognizes that you are concerned about privacy. We are committed to preserving your privacy and safeguarding your sensitive information. The following statement describes the general information-gathering and usage practices of our sites.

Our staff, contractors, Internet service providers and others involved in this site follow this policy or similarly strict policies regarding your Information.

Disclosure

The Company is committed to fully disclosing our policies regarding the collection, use, maintenance, disclosure and security of personal information obtained from users of our site. The term "personal information" includes a name, address, email address, or any other information which could be used to contact you directly or to identify you personally.

Use and Disclosure Limitations

The Company only uses personal information about its Web site users for specific purposes. We do not share user information with third parties except when we have told users about the disclosures, when we have prior consent, or when required by law.

Use Policy: When the Company gathers personal information from users, we ask for permission first. We also disclose, at the time of collection, how the information will be used by us. Personal information is used for activities such as auto-completion of commonly-used forms and helping us contact you when you solicit information from us.

Disclosure Policy: We do not normally disclose personal information to anyone outside of the Company unless we have previously informed users about the disclosures. However, some data may be used from time to time by outside contractors, including auditors or consultants, to assist us in carrying out necessary financial or operational activities. These uses will be consistent with this privacy policy and all contractors using this potential personal information must agree to safeguard it, to use it only for the authorized purpose, and to return it or destroy it upon completion of the activity.

The Company might be required to disclose personal information in response to a valid legal process such as a subpoena, search warrant or court order.

Although unlikely, it is possible that we may have to make certain disclosures to ensure the security of our Web site, to protect its integrity, or to take precautions against potential liability. In any of these situations, we will take any reasonable steps to limit the scope of the data disclosed.

Web Logs: The Company maintains standard Web logs that record basic information about visitors to our Web site. These logs contain: * The Internet domain from which you came to our Web site. * Your IP address. An IP address is a series of numbers which uniquely identifies your connection to the Internet. Although it is possible in some instances, certain types of IP addresses may be used by interested persons to identify users but we do not attempt to identify users in this way. * The type of browser (e.g., Internet Explorer or Netscape) and operating system (e.g., Windows 98) you use. * The date and time you visited the site, and the pages you saw.

We use Web log information to design our Web site, identify popular features, and in similar ways. We do not try to identify individuals from Web logs or to link Web logs to other user information. However, if someone tries to damage our Web site or use it in an unauthorized or illegal way, we may share Web log information with law enforcement agencies. The Company may provide aggregate information such as the number of users who visit particular pages of the site, or the number of people who link to certain external sites from our site, to other parties.

Changes to Privacy Policy

The Company's features and services will change over time and our information-gathering practices and policies may also change.

While our philosophy of protecting user information from inappropriate uses and disclosures will not change, this policy will be updated occasionally to include any change that materially affects the collection, maintenance, use, or disclosure of personal information.

Forum Topics

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  • Hi guys, I've been accepted to the schools listed above as a sophomore transfer student. I currently attend a semi-target public school and am looking to break into BB IB and eventually PE in east asia. I will be interning at a boutique ibank this summer and has done BB PWM during the school...
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  • So far this summer I have been a SA for a boutique investment bank here in NYC - midtown. Its not too small, and isn't regional. Has international exposure, deal size I would say is not too small, but not too big. I am a Sophomore in undergrad by the way. So in that aspect, I did not expect to...
    SA? More like BB (Banker Bitch) - Help
  • I was reading some advice somewhere on dress for Wall Street interns, and it said stick to white or light blue for your dress shirts. Are other colors generally not acceptable? Does it make a difference whether it's business casual or business...
    Is it true that you should stick to only white or light blue for dress shirts?
  • Hi guys, I have been lurking here for a bit and i decided to give it a try and ask something specific to my situation. I am an Economics major at a ( what I assume from what I've read so far) non target university... I also know that liberal arts degrees 'get shit on a lot' and...
    Noob here...completely clueless
  • So I am a Master of Accountancy at a semi-target school and got a 650 on the GMAT. If I end up getting an MBA later on I plan on taking it again, but as far as now concerned would putting a GMAT score of 650 on my resume help me or hurt...
    650 GMAT score too low to put on resume?
  • If you are good at ER or have modeling expertise-please help me with this: I'm an undergrad and I'm currently building a model, in which I am breaking revenues, operating profits, and ebitda down by segment. There are 4 main segments to the company. i've grabbed the data from...
    Please Help
  • Hey guys, I just got moved to the second round interview at VC firm for a summer internship. I got an email saying that this won't be a test of my VC knowledge, but skills that will add value to the portfolio companies. I'm a sophomore engineer with no prior finance experience. Can...
    2nd round interview coming up, what to expect?
  • Hi All, I'm attempting to break into the financial industry, but want to know if it's worth it, as I do have a minor criminal history. In 2010, I was convicted of 1 misdemeanor- fraud which amounted in the loss of $100. At the time of the crime, I was 19 years of age. I was sentenced...
    Applications for licensing
  • How strict is the requirement for 6 month+ experience with job postings? I have about a years worth of internship experience in IB and PE and just wanted to know if these experienced positions are worth my time? Are BBs strict? what about MMs? obviously small boutiques will be...
    6 months - 1 year exp
  • Recently my oncologist told me I wasn't in remission and honestly all I could think about is what that means for my chance at any summer internships. I'm barely above a 3.0 and have no finance related work experience with a little over a year to graduate left. Anyone got some good...
    What was the low point of your career?
  • <strong>Financial modeling</strong> is a skill that any investment banking analyst will have to master. Although the majority of investment banks and other financial firms now have formal training programs, many students and prospective finance professionals are choosing enroll in...
    Financial & Valuation Modeling Boot-Camp
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Upcoming Events

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I used to work with a guy that had everything on the surface, but absolutely nothing inside. The guy was 6 feet tall, good-looking, charismatic, multi-lingual, graduated from a top business school, and had made MD at a bulge bracket investment bank. Yet he couldn’t remember the last time he...
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Assuming that you have access to no financial products such as FactSet, Bloomberg, CapitalIQ, Thomson or otherwise, thought it would be helpful to give a step by step guide on how to ramp up on a new company from your home computer. Using FaceBook as an example. Lets go ahead and start with the...
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