2. Overview
Options prop shop
➔ No outside investors
Trading on 11 Options exchanges
➔ CBOE, AMEX, ARCA
Primarily long-term options, some HFT
3. Finances
● Prop shop - no transparency
● Haircut to measure risk
● Profits highly variable
● Delta neutral book
● Thrives on stable volatility
4. History
● Founded 1999 by Rob Merrilees
○ On-floor trader
○ Moved to off floor equities
● Five member team - grew to ~200 now
● Focused on technology
○ Started the same time as electronic trading
5. What is “hot”
● Short term VX (VXST)
o New product
● Market Maker designations
o Saves on commision, etc.
6. Secret Sauce
● Traders don’t get commision
o everyone is one team
● Breadth of field
o expand into new markets...
o but no OTC products
● Research
o in-house, not Bloomberg
● Technology focus
7. Story
● Interned
o well treated
● Revolving door
● Strange environment for devs