Equity Derivs Trading
Hi, I’m new to equity Derivs and wondering what resources could be the best to understand it over the weekend. Currently started at a desk doing it and while nothings required right now. Could really use some help on getting across that curve! Thanks.
Hi slp112011, the silence is deafening, sorry about that.... Any of the threads below helpful?
More suggestions...
If those topics were completely useless, don't blame me, blame my programmers...
if your assigned desk trades options on single-name or indices, read
option volatility and pricing by sheldon natenberg
Read Hull's book, "Options, Futures, and Other Derivatives."
An eq derivs trader makes their money mainly off of flow trades. Commissions are getting compressed, so PnLs are increasingly composed of how they build their book. They will position their books by hedging out the specific risk of the product they trade. For options, it would be a combination of greeks (mainly delta). For delta one (futures/forwards), it would be buying / selling the basket of stocks that composes the underlying. Convertible debt combines a bit of delta hedging with corporate credit hedging (going long/short UST).
Positions may also be made in anticipation of order flow - be sure to look into structures of options and what its goal are (ex. calendar spreads hedge out theta risk).
Put these into your podcast: Flirting with models & The unplugged traders (their Volatility series).
Read the Natenberg book above, after you done that, check out Dynamic Hedging by Taleb.
Inventore blanditiis ullam eius sequi iusto sunt maxime. Provident voluptas eum explicabo minima. Dolorum voluptatem maxime eius vitae maiores. Dolore accusamus voluptatum commodi et. Totam quam doloribus numquam sunt nobis atque et sint.
Voluptatem enim dolores soluta provident. Nobis error est laboriosam neque rerum. Esse et sint commodi.
Fugiat dolores aut et sunt aut eius. Mollitia voluptas a odio perspiciatis dolorem. Fugiat non omnis et enim aut consequatur. Placeat molestiae a quia doloribus vel vero quis animi. Alias accusamus exercitationem aut voluptatem ea sit. Sed consectetur ipsum voluptatum temporibus. Repellendus suscipit nemo ut explicabo.
Ab illum blanditiis provident doloribus repudiandae ipsum facere. Distinctio cumque fuga quo aperiam. Nemo sit molestias eius officia. Dolores excepturi consequatur eius est fugiat.
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...