Junior Option trader test and interview advice

[maggie1983112]

Hi guys, luckily I went through the Math test and HR interview for the position of junior option trader. There are two more tests coming soon: trading simulation and analytical tests. I will graduate soon for my master in Finance and no trading experience at all. My financial knowledge about option is quite solid, but still very nervous cauz that's purely theoretical knowledge. I would really appreciate if somebody can give me some advice, like what's the test like in general? where I can practice simulated trading, which software you recommend? Which website is good for explaination of technical analysis for starters? and what's essential for option trading? I konw by heart about put, call, the greeks, butterfly, strap, strip...... BS model, put-call parity and so on, the basics. where should I focus on to strength myself? THANKS A LOT!!!

 

[WolverineHK]

Yeah, please help this hard working girl. I am pretty much in the same situation, guys please help us. THANKS

 

[Martinghoul]

You have to provide more context and info for anyone to be able to help with anything...

 

[GammaJammer]

brush up on probability theory etc. I reckon. They won't expect you to know how to trade options - they'll want to test your mental agility to see if the building blocks are of sufficient calibre that you will be able to LEARN how to trade options in the fullness of time. So tests on probability, distribution, return, odds etc etc could well form part of the test.

The product knowledge you have sounds like it's sufficient for starters - it's a question of whether you're a quick thinker or not imho......

 

[maggie1983112]

There is nothing more I know, the only thing I can say is the company name is All Options(acquired Saen Options earlier this year). So, anyone with experience?

You have to provide more context and info for anyone to be able to help with anything...

 

[Martinghoul]

The only thing I can suggest would be looking at various option brainteaser questions and see if you can answer them. Some of the answers can lead into a discussion of real world issues, rather than theory.

 

[maggie1983112]

Thanks a lot, but where I can find these kind of option brainteaser quiestions?

The only thing I can suggest would be looking at various option brainteaser questions and see if you can answer them. Some of the answers can lead into a discussion of real world issues, rather than theory.

 

[GammaJammer]

I googled it, and it came up with a link from Wilmott. Nice.

Wilmott Forums - Options brainteaser

 

[GammaJammer]

http://www.quantitativefinanceforum.com/forumdisplay.php?f=6

more like it....

But I have to say you don't seem like you're really trying all that hard.

I found this stuff in two minutes and I'm sure there's loads more out there. All I'm doing is googling. If you can't even be bothered to do that you're gonna struggle to actually convince anyone it's worth their time to train you.

Cmon - sharpen up.

 

[AJJ]

brainteaser questions

Thanks a lot, but where I can find these kind of option brainteaser quiestions?

Hi,

Here are two teaser questions:

1. You buy a "time call spread" both ATM strikes. ....question...what is your delta?
(no dividend, no interest)

2. You buy a call....question...what happens with the call price (CP.) when the interest rate rises?

Good luck.

 

[paul_trader]

ok, here you go, the truth is that you have to be interested in financial markets but you dont have to know much about options especially if it is not your background. have a look at some historical graphs of biggest indeces of the world... its one of the tasks is to identify the graph of the index... anyway good luck. just keep it together. i can tell you that it does not take a genius to get a job as a trader and from my experience you dont even have to be smart. i know quite a few bums in the market so just be confident!

 

[camisado]

Re: brainteaser questions

Hi,

Here are two teaser questions:

1. You buy a "time call spread" both ATM strikes. ....question...what is your delta?
(no dividend, no interest)

2. You buy a call....question...what happens with the call price (CP.) when the interest rate rises?

Good luck.

1. 0.5 ?

2. call price = price of a call option? if its equity option it should go up, as a rise in the interest rate will also mean an increase in the carrying costs..

 

[HoodTrader]

1. depends how you define ATM. If they are forward ATM strikes then 0.
2. as interest rate goes up, forward price goes up, i.e. call price goes up