I have started reading through Hull to learn more about options and derivatives. I have no previous experience in or knowledge of derivatives. Could someone tell me which chapters must I complete to be ready for internship interviews?
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The first few chapters talking about futures/forwards, mechanics of options markets, trading strategies involving options, and the chapter on the Greeks is a good place to start.
Thanks :)
Imo... This book is too advanced for you and it is HUGE. For someone who has no knowledge of derivatives, it is going to get confusing. I say try something easier smaller in terms of size. Google "CFA Level 1 Investopedia and learn from there"...This book gets into the math implications as far as options pricing, delta-gamma-vega approximation, basis hedging, etc... and if you want to get ready for an interview, you Won't have time to learn all of it. Learn the basics and move on. And get back to the more advanced stuff when you can.
Open a paper trading account and buy some options, start with real world experience and then read about questions you have after you make/lose $.
He's not asking to learn how to trade... He's asking about product knowledge...
Is seeing the mechanics of the product in real time not gaining knowledge about the product?
In college I also read a book on options and did not grasp how the product worked until I saw a example in the market. I then had better understanding and when returning to the book I was able to understand the text much easier.
That's only a good idea after he's gained a fundamental understanding of the product and how the pricing works.
I guess if he wants to have basic intuition. But I work on the vol desk, personally, I would rather learn the basics (Maybe learn this from trading first?), understand the market structure, then work my way up to option strategies, black Scholes, managing the greeks, implied volatility, vol surface...
That's good that worked for you, I wouldn't be able to do that.
I think it would be better to learn from the textbook than to trade immediately and waste time. His P/L will fluctuate from many factors, so he won't know what to ask.
sure agree thats great man
Actually I am at a B School but I cannot start with Financial Markets subjects until next trimester. So that's why I was planning to start learning on my own about options, futures and other products. Since Hull is such a vast book so I was not sure exactly which chapters do I need to study to be able to face interviews.
Still thanks a lot for the comments...
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