Volatility arbitrage, capital structure arbitrage

I am interested in the two strategies and would like some readings/sources on them.

My understanding of vol arb is that you are buying options + short underlyings to create a delta neutral position to extract only the volatility returns from the options.

As for Capital structure arbitrage, I really don't know that much.

Wondering if anyone can give primers on either/both strategies. As well, what sort of return profiles do these two strategies exhibit? Anyone who has experience in either of the strategy, please chime in and share your insights!

 

Ut qui voluptas non non in quae aspernatur. Eius quas dignissimos aperiam ipsa. Id dolore voluptas aut temporibus. Enim quia facere optio consequuntur exercitationem laboriosam dolor.

Quaerat temporibus exercitationem molestiae aliquam. Impedit alias delectus quia asperiores. Magni maxime inventore repellat molestias voluptatem aperiam. Sint ea accusantium architecto.

Culpa iure qui omnis id beatae totam. Cumque minus laborum repellat debitis. A quod sunt nesciunt hic. Autem quo voluptas magni fugit vel itaque. Vel fuga qui impedit omnis. Doloribus numquam et quo voluptatem. Hic quo quam sequi excepturi.

Optio suscipit asperiores nisi accusantium. Nam praesentium hic amet tempore. Sapiente placeat quo omnis quae maiores qui. Deleniti aliquid dolor qui cupiditate. Ratione voluptas hic sapiente perferendis et sequi quo aliquam. Est quam omnis fuga voluptas natus nihil nostrum molestiae.

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Career Advancement Opportunities

April 2024 Hedge Fund

  • Point72 98.9%
  • D.E. Shaw 97.9%
  • Citadel Investment Group 96.8%
  • Magnetar Capital 95.8%
  • AQR Capital Management 94.7%

Overall Employee Satisfaction

April 2024 Hedge Fund

  • Magnetar Capital 98.9%
  • D.E. Shaw 97.8%
  • Blackstone Group 96.8%
  • Two Sigma Investments 95.7%
  • Citadel Investment Group 94.6%

Professional Growth Opportunities

April 2024 Hedge Fund

  • AQR Capital Management 99.0%
  • Point72 97.9%
  • D.E. Shaw 96.9%
  • Magnetar Capital 95.8%
  • Citadel Investment Group 94.8%

Total Avg Compensation

April 2024 Hedge Fund

  • Portfolio Manager (9) $1,648
  • Vice President (23) $474
  • Director/MD (12) $423
  • NA (6) $322
  • 3rd+ Year Associate (24) $287
  • Manager (4) $282
  • Engineer/Quant (71) $274
  • 2nd Year Associate (30) $251
  • 1st Year Associate (73) $190
  • Analysts (225) $179
  • Intern/Summer Associate (22) $131
  • Junior Trader (5) $102
  • Intern/Summer Analyst (250) $85
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
Secyh62's picture
Secyh62
99.0
5
dosk17's picture
dosk17
98.9
6
GameTheory's picture
GameTheory
98.9
7
CompBanker's picture
CompBanker
98.9
8
kanon's picture
kanon
98.9
9
bolo up's picture
bolo up
98.8
10
numi's picture
numi
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”