Meet the Market Makers on the Other Side of Your Trade · Erik Swanson

EP 220: Meet the Market Makers on the Other Side of Your Trade

Erik Swanson, CEO of Simplex Trading, pulls back the curtain on how his firm operates as one of the top market makers in U.S. equity options—from quoting to hedging, and the complexities in between.

It was hugely interesting to chat with Erik, seeing as he shared a lot of information that is generally very difficult to attain. Listen and learn what market makers are really doing...

00:00 – Intro
01:40 – Trader to CEO
04:44 – Who is Simplex Trading?
08:23 – Options Market Making: Quoting, Fair Value etc.
19:25 – Options Market Making: Hedging, Delta, Risk, Profitability etc.
33:30 – Gamestop Saga: From a Market Makers' Perspective...
40:56 – Payment for Order Flow
50:00 – Maintaining a Competitive Edge
51:36 – Getting Hired
55:13 – Outro

Show notes:
https://chatwithtraders.com/220

#DayTrading #Options #StockMarket