Options Trader Trainee

This interview took place a little pre 2008, but this was the last "real" interview I had so I am choosing to add this to the database to access the information here because I have an interview coming up that I'm trying to prepare for.

This was an interview for a options trader trainee position. I will do my best to recall as much information about the interview process as possible.

The first interview was a group interview. There were approximately 8 candidates interviewing at the same time as me. The first part of the interview we were all put in a conference room and told we had 10 minutes to complete a 30 question IQ test, the test was multiple choice. After the IQ test we were brought in 1 after the other and given a interview with 2 of the senior traders in the office and the head trader/manager of the office. During my time I was asked questions from all of the traders, one would ask a math, then one would ask a logic question, then one would ask a personal question/something off my resume. I don't remember how many questions I was asked. It was intense because they expected fast answers.

The last part of the interview all of the candidates participated in a mock trading session where we were giving a sheet of the theoretical prices of an orange, apple, banana. We were standing in a circle, then the traders came around us and would ask us what our market was in the apple/banana spread, or orange/apple spread, etc("what's your bid and offer in the orange/apple 1by 2?"). They were attempting to simulate a pit trading atmosphere, to an extent.Obviously to test your computing ability on your feet and if you could act under pressure. This was when options trading on the floor of exchanges was all done on the floors of exchanges. They were looking for candidates who would become great floor market makers/options vol traders.

After the above interview, I was given a second interview and asked questions about my resume, background, and experience. This time by the manager and a couple of the traders. Was asked more IQ type questions as well.