7 ms·

I assume exotic derivatives (binary, asian, barrier options...) and structured notes that predominantly use above said derivatives (autocallables, barrier rever

I assume exotic derivatives (binary, asian, barrier options...) and structured notes that predominantly use above said derivatives (autocallables, barrier reverse convertibles, accumulators etc.)

bmitc 8mo ago
Thank you. No matter how much I try to understand the financial system, there seems no end to the nomenclature. Do you or others know of any good references that help navigate this?
- lordnacho 8mo ago
  Options, Futures, and Other Derivatives by Hull, that's the classic. Not sure how exotic he gets but likely the page that sells this book will have other options books. I think there's one by Espen Hauge about exotics. Relevant book by Nassim Taleb (before his big break) is Dynamic Hedging, which tells you what to do with your option risk once you have it.
- e-master 8mo ago
  Really depends how deep you want to go. For a structured products introduction you may take a look at this one: https://sspa.ch/en/book/ https://sspa.ch/en/book/ It's a very simple book, very high level, but explains the most popular structured products in a very simple manner. If you can read a payoff diagram, then this is the simplest intro. Looking at their website though, they seem to have some nice online material there also. For example this explains the 5 most popular products, and perhaps that's good enough for an introduction (really these 5 products cover 90% of the market anyway, though there's no limit to how exotic some bespoke structures can get): https://sspa.ch/en/lab/?underlying=CH0012221716&final_fixing=36&strike=100&protection_level=90&state=selection&product=capital_protection https://sspa.ch/en/lab/?underlying=CH0012221716&final_fixing... In case you're interested in getting to get to learn about them on a deeper level I would recommend https://www.amazon.com/Exotic-Options-Hybrids-Structuring-Pricing/dp/0470688033 https://www.amazon.com/Exotic-Options-Hybrids-Structuring-Pr.... This book explains not only the products, but also the pricing dynamics and hedging too. And just a small gem I found recently about volatility trading:https://www.ebay.co.uk/itm/306680584072?chn=ps&_ul=GB&_trkparms=ispr%3D1&amdata=enc%3A1lAP7IxCzQlCBWexbpOKLyA32&norover=1&mkevt=1&mkrid=710-169684-232771-8&mkcid=2&itemid=306680584072&targetid=325425753764&device=m&mktype=pla&googleloc=9188311&poi=&campaignid=20646531776&mkgroupid=160183588928&rlsatarget=pla-325425753764&abcId=&merchantid=101729981&gad_source=1&gad_campaignid=20646531776&gbraid=0AAAAAo9ZJxtYm_3xAIz1Q12hoG3f9wG_D&gclid=Cj0KCQiA-NHLBhDSARIsAIhe9X3RVfNm9IocZmzP0LgTr0yoLJ9doTH4PHn0mgHmn0OqZPQhcIyufeoaAgJVEALw_wcB https://www.ebay.co.uk/itm/306680584072?chn=ps&_ul=GB&_trkpa... Despite its appalling Amazon reviews I consider this book to be a real gem when it comes to the introduction to vol trading (basically dynamic hedging of equity derivatives)
- fancyfredbot 8mo ago
  Patrick Boyle, early in his YouTube career, made some videos on exotic options. This is a lot more engaging and possibly more informative than reading Hull. https://youtube.com/playlist?list=PLHC72UlhAthBEEAhoQwPdDaL_mF9z5u9L&si=AYAzApWNzqllpDW9 https://youtube.com/playlist?list=PLHC72UlhAthBEEAhoQwPdDaL_...

I assume exotic derivatives (binary, asian, barrier options...) and structured notes that predominantly use above said derivatives (autocallables, barrier reverse convertibles, accumulators etc.)

bmitc 8mo ago

Thank you. No matter how much I try to understand the financial system, there seems no end to the nomenclature. Do you or others know of any good references that help navigate this?

lordnacho 8mo ago
Options, Futures, and Other Derivatives by Hull, that's the classic. Not sure how exotic he gets but likely the page that sells this book will have other options books. I think there's one by Espen Hauge about exotics. Relevant book by Nassim Taleb (before his big break) is Dynamic Hedging, which tells you what to do with your option risk once you have it.
e-master 8mo ago
Really depends how deep you want to go. For a structured products introduction you may take a look at this one: https://sspa.ch/en/book/ https://sspa.ch/en/book/ It's a very simple book, very high level, but explains the most popular structured products in a very simple manner. If you can read a payoff diagram, then this is the simplest intro. Looking at their website though, they seem to have some nice online material there also. For example this explains the 5 most popular products, and perhaps that's good enough for an introduction (really these 5 products cover 90% of the market anyway, though there's no limit to how exotic some bespoke structures can get): https://sspa.ch/en/lab/?underlying=CH0012221716&final_fixing=36&strike=100&protection_level=90&state=selection&product=capital_protection https://sspa.ch/en/lab/?underlying=CH0012221716&final_fixing... In case you're interested in getting to get to learn about them on a deeper level I would recommend https://www.amazon.com/Exotic-Options-Hybrids-Structuring-Pricing/dp/0470688033 https://www.amazon.com/Exotic-Options-Hybrids-Structuring-Pr.... This book explains not only the products, but also the pricing dynamics and hedging too. And just a small gem I found recently about volatility trading:https://www.ebay.co.uk/itm/306680584072?chn=ps&_ul=GB&_trkparms=ispr%3D1&amdata=enc%3A1lAP7IxCzQlCBWexbpOKLyA32&norover=1&mkevt=1&mkrid=710-169684-232771-8&mkcid=2&itemid=306680584072&targetid=325425753764&device=m&mktype=pla&googleloc=9188311&poi=&campaignid=20646531776&mkgroupid=160183588928&rlsatarget=pla-325425753764&abcId=&merchantid=101729981&gad_source=1&gad_campaignid=20646531776&gbraid=0AAAAAo9ZJxtYm_3xAIz1Q12hoG3f9wG_D&gclid=Cj0KCQiA-NHLBhDSARIsAIhe9X3RVfNm9IocZmzP0LgTr0yoLJ9doTH4PHn0mgHmn0OqZPQhcIyufeoaAgJVEALw_wcB https://www.ebay.co.uk/itm/306680584072?chn=ps&_ul=GB&_trkpa... Despite its appalling Amazon reviews I consider this book to be a real gem when it comes to the introduction to vol trading (basically dynamic hedging of equity derivatives)
fancyfredbot 8mo ago
Patrick Boyle, early in his YouTube career, made some videos on exotic options. This is a lot more engaging and possibly more informative than reading Hull. https://youtube.com/playlist?list=PLHC72UlhAthBEEAhoQwPdDaL_mF9z5u9L&si=AYAzApWNzqllpDW9 https://youtube.com/playlist?list=PLHC72UlhAthBEEAhoQwPdDaL_...