try to make sense of things that mostly don't make sense
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Most “please hike rates” moment today, went to a VC boutique and was quoted 5 year wait for an overseas. Insanity…
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"there are bonds in the stocks" yes unfortunately earnings are growing 30% year over year so your multiple compression argument has a lot of negative theta.
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Hard HF truth, most people are just beta. Rates RV = steepener + carry beta, credit = short vol / new issue beta, equities = QQQ>SPY+ IPO beta Commodities = F0/F3 + congestion beta. Vol = disp + SPX vol skew + term structure beta. Thank you for your attention to this matter!
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1) if you disagree and your strat has no beta to any of the below someone will hire you (and integrate your alpha for a sweet 2 years of income). Equity people there’s probably more to your fantastic sector expertise but likely an etf spread is close enough.
Hard HF truth, most people are just beta. Rates RV = steepener + carry beta, credit = short vol / new issue beta, equities = QQQ>SPY+ IPO beta Commodities = F0/F3 + congestion beta. Vol = disp + SPX vol skew + term structure beta. Thank you for your attention to this matter!
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2012-13 was the optimal graduating year in finance. Starting gaining responsibility/PL ownership in the Mag7 cloud easy mode years, monetized 2020-21 at age where that was a 7-8 figure paycheck.
Older Zoomers had it so easy. They graduated college pre-ChatGPT and then got to take advantage of the 2021-2023 job market. Easily the best hand any generation’s been dealt in a while.
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It’s always my advice to any college student interested in maximizing median outcome. The right tail outcomes almost never come from taking lower risk paths, but if you don’t know what you want to do and just want to make money, try to get the job that everyone else wants.
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If you had a job that paid you 1mm/y w 150k sd comp, would you take a job that pays 2mm/y with 1.5mm sd (floored at 250k)? What if the next job | on 250k floor = 400k perp?
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Yes
33%
No
197 votes • Final results
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Option trader interview question thread:
1) What is the variance swap basis? What sign is it typically? Why? Is there a term structure to this basis? If so, why?
2) what point on the spx skew is usually the lowest implied volatility? Why is that the case?
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5) if you are short a Vix future and long a calendar of spx atm options (gamma neutral, long b.s. vega/rt Vega) with matched maturities such that the entire trade is Vega neutral, what risk are you taking? How would you assess the quality of this trade?
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3) if you are long a 1m 25d risk reversal in SPX, delta and gamma neutral and the market sells off 1 daily sd, what will be the primary driver of your pnl (which Greek)?
a) if fixed strike vol is unchanged, did you make or lose money?
b) a) but fixed moneyness vol?
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