Optiver Grad Equity Analyst Technical Interview

Based on the most helpful WSO content, here’s what you need to know for preparing for a technical interview like the one for Optiver's Grad Equity Analyst role:

1. Focus Areas Beyond the Case and Resume:

   • Expect a mix of technical, market-related, and behavioral questions. Some firms may lean heavily on technicals, while others might test your market knowledge and thought process.
   • Be prepared to discuss your investment ideas, market views, and catalysts. They may want to see how you think about macro and idiosyncratic risks.

2. Depth of Accounting/Valuation:

   • You should be ready to dive into DCF, three-statement linkages, WACC, and terminal value calculations.
   • Topics like leases, stock-based compensation (SBC), and revenue recognition could come up, especially if they relate to your case or resume.
   • Ensure you can confidently explain the function of each piece of a formula and its relevance to valuation.

3. Market Views and Catalysts:

   • Be prepared to discuss recent market trends, specific sectors, or companies. They may ask for your opinion on a particular industry or stock and how you would evaluate it.
   • Highlight your ability to think critically and defend your views with logical reasoning.

4. Modeling and Mental Math:

   • Quick modeling exercises or mental math tests are common. Practice basic calculations like percentages, growth rates, and ratios without a calculator.
   • Familiarize yourself with Excel shortcuts and basic financial modeling techniques.

5. Brainteasers/Trading-Style Questions:

   • Brainteasers or trading-style questions may test your problem-solving skills and ability to think under pressure. Examples could include probability puzzles or questions about market dynamics.
   • Stay calm and articulate your thought process clearly.

6. Format and Time Split:

   • Interviews often include a mix of technical questions, case discussions, and behavioral questions. Time allocation can vary, but technicals and case discussions typically dominate.
   • Be concise and structured in your responses to manage time effectively.

7. Do’s and Don’ts:

   • Do’s:
     • Prepare thoroughly on technical topics, especially those relevant to equity analysis.
     • Research Optiver’s focus areas and recent market activity.
     • Practice explaining complex concepts in simple terms.
   • Don’ts:
     • Avoid overcomplicating your answers or guessing if you’re unsure. It’s better to admit gaps and pivot to related knowledge.
     • Don’t neglect behavioral questions—they’re often used to assess cultural fit.

8. Sample Questions to Prep:

   • How would you value a company in [specific industry]?
   • Walk me through a DCF and explain the key assumptions.
   • What are the linkages between the three financial statements?
   • What’s your view on [recent market event or trend]?
   • How would you evaluate a company with $100M revenue and 20% EBITDA margin?

For additional prep, consider leveraging resources like WSO’s financial modeling bootcamps or technical guides to sharpen your skills. Good luck!

Sources: Interviewing for a SA or Analyst position? Here's what I'd want to hear as a VP., Q&A: 1st year VC analyst (~750M AUM), J.P. Morgan - Video Interview Invitation Corporate & Investment Banking Summer Analyst, Helpful Resources For Breaking Into Equity Research, Notes for Technical Interview Questions