How do you know if you want to be an Options Market Maker?

Based on the most helpful WSO content, here are some insights and steps you might consider:

Evaluating Your Interest in Options Market Making:

1. Assess Your Current Role:

   • Daily Activities: Your current role involves answering broker RFQs, quoting around theoretical values, noticing abnormalities in flow, and engaging in relative value volatility trades.
   • Intellectual Stimulation: While you find the product intellectually stimulating, you are unsure about the long-term appeal of relying heavily on model outputs and spreads.

2. Comparing with Competitors:

   • DRW's Approach: DRW takes down larger sizes due to the support of fundamental analysts, which allows for more confident directional trading. This approach seems more aligned with traditional trading and idea generation, which you find appealing.

Steps to Consider:

1. Networking with Competitors:

   • Reach Out: It might be beneficial to reach out to traders at competitors like DRW to understand their day-to-day activities and the role of fundamental analysis in their trading strategies.
   • Informational Interviews: Conduct informational interviews to get a sense of whether their approach aligns more with your career aspirations.

2. Internal Reflection:

   • Long-Term Goals: Reflect on your long-term career goals and whether you want to continue in a role that is heavily model-driven or move towards a more idea-generation and position-taking role.
   • Skill Development: Consider if there are skills or experiences you need to develop to transition to a role that aligns more with your interests.

3. Exploring Opportunities:

   • Internal Opportunities: Look for opportunities within your current firm that might offer more exposure to idea generation and position taking.
   • External Opportunities: If internal opportunities are limited, explore external opportunities at firms that align more with your desired trading style.

Conclusion:

Reaching out to traders at competitors and conducting informational interviews can provide valuable insights into whether a move would be beneficial for your career. Reflecting on your long-term goals and exploring both internal and external opportunities can help you make an informed decision about your career path in options market making.

Sources: How to create value from my network, Knowledge Sharing: Corporate Development / M&A, Cold reach out to brokers/acquisitions/development shops during this time, Navigating The Floor: A S&T Analyst's Guide, Non-target average student declined BB trading ops offer, now having some second thoughts