Guidance on Equities derivatives desk at Goldman (London)

For your final round interview with the equity derivatives trading team at Goldman Sachs, here’s how you can structure your preparation based on the most helpful WSO content:

1. Technical Knowledge:

• The Greeks: Be prepared to discuss the Greeks (Delta, Gamma, Vega, Theta, Rho) and their implications in trading strategies. Even if you're not heavy on stats/quant, understanding how these metrics affect options pricing and risk management is crucial.
• Options Pricing: Brush up on the Black-Scholes model and implied volatility. You might not need to derive formulas, but you should understand the intuition behind them.
• Market Making: While brainteasers or probability questions might come up, focus on understanding how market makers operate, including bid-ask spreads, liquidity provision, and risk hedging.

2. Market Views:

• Be ready to discuss your views on the current equity markets. Memorize key equity index levels, recent trends, and major economic events. This shows you're engaged with the markets and can think critically about them.
• Prepare a trading pitch or an idea. As highlighted in WSO threads, your pitch should have an edge—explain why you expect to make money and what the risks are.

3. Behavioral Questions:

• Expect questions about your CV, such as your motivation for joining the equity derivatives desk, your interest in trading, and how your Econ/Math background applies to the role.
• Be prepared for situational judgment questions, like how you would handle a disagreement on the desk or a high-pressure trading scenario.

4. Adaptability and Proactivity:

• As noted in WSO discussions, adaptability is key. Show that you can work with different personalities and add value to the team. For example, mention how you could improve processes or contribute ideas.

5. Practical Tips:

• Leave a Written Trail: If asked about how you handle tasks, mention the importance of documenting decisions and communications, as this is a common practice in trading.
• Be Concise: Keep your answers high-level initially, allowing the interviewer to probe deeper where necessary.

6. Brainteasers and Probability:

• While not guaranteed, brainteasers or probability questions could come up. Practice common trading-related brainteasers and basic probability problems to stay sharp.

By focusing on these areas, you’ll be well-prepared to tackle both technical and behavioral aspects of the interview. Good luck!

Sources: https://www.wallstreetoasis.com/forum/asset-management/sales-trading-interview-guide-gekkos-guidance-part-2?customgpt=1, Q&A: Equity Derivatives S&T, https://www.wallstreetoasis.com/forum/investment-banking/goldman-sachs-investment-banking-summer-analyst-hirevue-overview?customgpt=1, The 24 Interview Lessons I Learned on the Way to Getting My First Full Time Job