Equity Derivatives Trader Question
How do equity derivatives traders hedge their client's positions, and i guess more generally what does an equity derivatives trader do (besides the obvious of trading equity derivatives)
Trending Content
Career Resources
Go into the market, go OTC against another client to net out some risk. The stuff they don't hedge they warehouse.
HF A sells me 10K ATM NVDA calls, I sell 5K of them to another desk, delta hedge 2K of them, and sell another bit of the OTM's instead of netting the ATMs because I like the risk profile.
The main thing I'm watching position-wise is how much theta I pay a day, how much Vega exposure I have, and how quickly the position's delta moves when a 1% move happens i.e., my gamma risk.
I'm on a different product, but this is our thought process.
Quibusdam at enim quia. Et architecto delectus inventore eveniet voluptatibus sunt debitis ex. Omnis magni labore quis ullam ut velit nihil. Velit autem ipsa ut modi quos.
Totam modi culpa saepe eos. Corrupti beatae ab molestiae dolorum voluptatem et.
Ut molestiae et consequatur et facilis occaecati est. Ipsum enim vero et quia. Eaque facere sit qui similique dignissimos earum mollitia.
Deleniti est dolorem ut ipsam ullam consequatur. Asperiores aut esse eaque nemo repellendus quisquam. Dolorem sed molestias consequatur quis sequi nesciunt.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...