I've been fortunate enough to secure an internship at a large quant fund. Part of the internship involves a rotation to one of the two groups in the title. I have a few questions that I'd love to get a broader opinion on:
- How does the future look for these two areas? For example, from what I understand HFT profitability has been squeezed the past few years, and options MM profitability has also been in decline, but I'm not sure if it's just the low vol environment.
- What kind of people tend to succeed in each role? I'm interested in hearing about both intellectual specialties and personal qualities.
Thanks!
I'd go for options MM. Even though it's squeezed, at least you're not doing latency arb or something like that. Also, options are pretty cool. If you learn about how they're priced/trade, you could move from options MM to vol arb or something like that.
so in your view you'd say options MM would be a more more flexible/broadly applicable experience? do you have any thoughts on single stock vs. index?
HFT and options MM are not mutually exclusive...
Also profitability is not decreasing, more of a winner takes the all environment.
They definitely aren't exclusive..but it looks like OP has to choose strictly one or the other, so I just assumed the options seat is screen trading and the HFT seat is non-options. In a winner-takes-all environment, then someone's profit has to decrease for another's to increase, no?
I believe QWE is saying the size of the pie is not shrinking. Some of the slices are getting a lot larger, with fewer slices than before.
just to clarify, in the context of my internship the opportunities are indeed mutually exclusive given that I can only rotate to one of them, but I understand that in the real world they don't have to be.
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