Hey guys,
got an email from a guy at GS today asking me if I would be available for an internship starting in Jan./Feb. (duration: at least 6 months).
As I mentioned in the description the division is equity derivatives.
I am currently doing an internship in cash and derivatives sales trading but haven't spent that much time with the derivatives guys since they've been going through a reorganization phase with a new boss/different focus etc.
I fear that I might get some hard questions during the interview due to the title (Cash and Derivatives). I'm familiar with the different option strategies and have some basic knowledge about the factors that influence the price of an option.
I bought the book options, futures and other derivatives by Hull a while ago but haven't had the time to actually read it. Which chapters are the ones that I should focus on?
Any sort of input is appreciated!
Merry christmas to all of you.
Cheers
Phil
i would get natenbergs book and read through as much as you can. it is less academic and more applicable than hull is IMO
The few chapters about options should do it: how they work, how is the price impacted by a change in parameters, then the chapter on Black-Schole, on the greeks, and the one on options' strategies (straddle & co). Mostly, you need to understand what you're reading, not only learn. Once you're done with this, read a little bit about the volatility smile (skew, smile, surface as well as a couple inequalities and equivalences for short term ATM options). Super important: know what will be the P&L of a hedged option if you hedge at implied, realized or in between.
Good luck, your internship will get you anywhere you want after that.
PS: that's weird how HR suck, they recently told me they don't do 6m internships. Fuck them
thanks guys
this internship is in london... I'm guessing you live in the US?
I used to... I think I just moved back to Europe (still in shock).
By the way, I've heard that London's job market is pretty bad... what's your opinion?
Yeah London's job market is pretty bad. And so is New York's. And Singapore's. And Hong Kong's. Getting the picture yet?
All my summer internship applications have been rejected (probably due to the fact that i am graduating in 2014 and am therefore not eligible) so it was quite a surprise to hear from Goldie. It seems to be really bad from what I've heard. If you're in restructuring and that sort of stuff I believe you may be pretty busy next year. There's always someone making a killing while the others suffer, right...
Sucks..
Do your best there, it's truly a terrific opportunity if you wanna get into S&T. And enjoy your meals at Chilango!
Any book on options would help as long as you will get only theoritical questions on options. I am in the CFA program and we study this stuff at all levels, however I realised how different the real world is from theory once I followed some great weminars at the CBOE website, they used to be free not now unfortunately. Suppose you want to buy a call option on GS, that's not like buying a share on GS, because you are going to find a long list of call options on GS, with different exercise price and different expiraration dates, which one would you chose? It's these kinds of questions that are crucial for a trader on options.
Lol at saying you study options in the CFA, CFA is a huge joke when it comes to any sort of derivatives, and the rest of your comment just proves my point.
Go through any of the following books: Hull, Natenberg, Sinclair
Then sit down with paper and pen and draw the following: Delta, gamma, vega, theta for Call, Put, Straddle, Strangle, Butterfly, risk reversal, call spread/put spread
Then on the same graph draw new delta/gamma/vega/theta curves following an increase in implied vol and decrease.
Do this without looking up the answers, trust me it will help you think more intuitively about how options behave.
.
Call, Put, Straddle, Strangle, Butterfly, risk reversal, call spread/put spread All this stuff could be found at any book on option, including the CFA program. Not sufficient for trading by the way.
Reread what i wrote, then reread what you wrote. Last time I checked the CFA program doesnt talk about DvegaDvol of a risk reversal.
The exercise i proposed actually teaches someone a lot of useful things that is applicable to trading.
And I work on an options trading desk btw.
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