Note that this academy is NOT livestreamed or recorded.
On November 11, we have a professional academy with one of the largest market makers, Optiver. Our guest speakers are ex-trader and lead educator at Optiver, Robert Pullen, and execution trader and former B&R Beurs board member, Alain Faddegon!
Have you ever wondered how traders actually work? What do they do and how? Market makers provide liquidity to financial markets by simultaneously showing prices at which they are willing to buy and sell options, i.e. a two-sided market. While trading options, market makers must manage the risk of these trades as well as their overall portfolio. Trading and risk management go hand in hand in this way.
After a broad introduction into financial markets and various instruments, we will discuss the special nature of options and the ways in which their price can be calculated. In this valuation of options, the so-called “implied volatility” plays a crucial role. For market makers this implied volatility and its behavior is the most interesting and challenging factor. We will discuss why!
After the lecture, we will all have the opportunity to network with drinks at the Erasmus Pavillion. We hope to see you there. Plus, you will receive some goodies from Optiver!
Note that this is also the first lecture where the Academy point system takes place, so make sure to be present so that your investment group has the chance to win some good prizes.
Optiver is a market maker on many exchanges. That means we don’t merely aim to improve the markets in which we trade; we are, in fact, obligated to do so. We achieve this by continuously offering the narrowest bid-ask spread we can, which is the difference between the buying price and the selling price of a given financial instrument. In doing so, we inject liquidity into the market by ensuring there’s always a willing buyer and seller for the products we trade, which allows investors to transfer some of their risk onto us (which we’re able to offset in a multitude of ways). As a result, the markets operate more efficiently, and because we consistently quote our buying and selling prices, they also operate more transparently.
The strategies and technology we deploy to make these market improvements are deeply complex. And they require a world class team of highly skilled professionals with expertise in a broad range of disciplines. But we are all bound by one very simple purpose: improving the market.