Jeff Malec interviews Convex CIO, Noel Smith in the first of a two-part episode of The Derivative by RCM Alternatives. They cover a broad range of interesting topics from the Pets.com and the Sears option pits to singing Janis Joplin’s Mercedes song to a down and out trader, to steak dinners at Gibson’s and a yacht on Lake Michigan. Along the way, Noel managed to fund the founding of electronic market maker Getco and create a prop firm spanning dozens of pits with 50 traders under him. How does market making in options really work, is gamma-driven delta hedging in option flow as important as FinTwit makes it out to be, and where did the floor trading edge go?
See the original post and transcript on RCM Alternative's website.