Options Market Making Career Progression

I'm a MFE student starting as a desk-quant in OMM at a tier 1 shop. Firm doesn't typically hire new grads. Desk has added several PM seats in the last year.

Curious what a typical progression looks like in OMM coming in as a junior.

How plausible is a move to a stat-arb / quant desk coming from OMM?

Ultimate goal is to make strides toward tier 1/1a PM seat (not necessarily in OMM).

Thankful for any advice / insight.

10 Comments
 

Based on the most helpful WSO content, here's what you need to know about career progression in Options Market Making (OMM) and transitioning to other roles:

  1. Typical Progression in OMM:

    • Starting as a desk quant, you'll likely focus on pricing, risk management, and model development.
    • Over time, you may transition into a junior trader role, where you'll take on more responsibility for managing risk and executing trades.
    • From there, progression typically leads to a senior trader or portfolio manager (PM) role, where you manage larger books and take on more strategic decision-making.
  2. Transition to Stat-Arb/Quant Desks:

    • Moving from OMM to a stat-arb or quant desk is plausible but requires building a strong foundation in quantitative skills and demonstrating an ability to generate alpha.
    • Highlight transferable skills like stochastic modeling, programming (Python, C++), and a deep understanding of market microstructure.
    • Networking within the firm and showcasing your ability to contribute to systematic strategies can help facilitate this move.
  3. Path to Tier 1/1a PM Seat:

    • To achieve a top-tier PM seat, you'll need to develop a track record of generating consistent returns and managing risk effectively.
    • Consider transitioning to a role that allows you to take on more proprietary risk, such as a quant researcher or trader on a systematic desk.
    • Building expertise in a niche area (e.g., volatility trading, cross-asset strategies) can set you apart.
    • Networking and mentorship are critical—seek guidance from senior PMs and align yourself with teams that have a strong track record of promoting talent.
  4. Additional Tips:

    • Stay updated on the latest quantitative techniques and tools (e.g., machine learning, convex optimization).
    • If your firm has added PM seats recently, it indicates growth opportunities—position yourself as a strong candidate by excelling in your current role and expressing interest in taking on more responsibility.
    • Be patient but proactive. Progression in OMM and transitions to other desks often require a mix of timing, skill, and internal advocacy.

Let me know if you'd like more specific advice on any of these steps!

Sources: https://www.wallstreetoasis.com/forum/hedge-fund/quant-hedge-fund-career-progression?customgpt=1, Routes to Buyside PM, Q&A: Non-Target School to Portfolio Manager at a Top Hedge Fund – 6 Years Out of Undergrad, Trader + Career Advice = Next Job, Advice On a Career

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

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