Updated March 14, 2024
3 min read
An options trader is a financial expert who works with the stock market to buy and sell stock options. Their tasks involve creating options contracts, developing forecasting models, and minimizing portfolio risk. They also assist head traders with client services to increase trading revenue. Options traders come in four categories: retail investors, industrial traders, broker-dealers, and market makers. They use various tools and techniques, such as option pricing risk management, technical analysis, and market data, to execute trades and manage risks. They also work with clients to invest in different stock options, which are contracts that give an owner of the stock the right to buy or sell the stock at a fixed price for a certain period of time.
How long does it takes to become an options trader?
It takes about 6 to 10 years to become an options trader. Here's an example timeline:
Year 1-4:Earn a Bachelor's degree in finance, economics, or a related field.
Year 5-6:Gain relevant work experience, possibly through internships or entry-level positions in finance.
Year 7-8:Obtain necessary certifications, like the Series 7 and Series 63 licenses.
Year 9-10:Build a track record of successful trading and continue learning advanced trading strategies.
- Salary$110,139
- Growth Rate10%
- Jobs Number1,433
- Most Common SkillFX
- Most Common DegreeBachelor's degree
- Best StateNew York
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Options Trader career paths
An options trader can go on to pursue a variety of career paths, including working as an equity trader, finance advisor, and finance analyst. They can also move into senior roles such as a portfolio manager, managing director, or owner. Some options traders may choose to start their own businesses as financial analysts or account executives. With experience, they can also become a senior vice president, executive vice president, or vice president.
Key steps to become an options trader
Explore options trader education requirements
If you're interested in becoming an options trader, you must consider how much education you need. Based on real options trader resumes, 82.3% of options traders have a bachelor's degree. Regarding higher education levels, 11.9% of options traders have master's degrees. Even though most options traders have a college degree, it's impossible to become one with only a high school degree or GED.
Most common options trader degrees
Bachelor's
82.3
%
Master's
Associate
3.4
%
Start to develop specific options trader skills
Options traders use a variety of skills to manage risk and identify trade opportunities. They leverage technical and fundamental analysis, use order flow volume analysis to identify trends, and incorporate correlation and technical analysis into their financial models. They also use programming languages like VBA and Python, and utilize automated high-frequency trading techniques. Effective options traders are able to analyze and report market conditions, identify successful trades using proprietary indicators, and monitor position risk and margins. They also develop and implement options strategies based on their research of market trends and individual options components.
Skills Percentages FX 32.16% Stock Options 16.62% Equities 10.93% Stock Market 5.46% Risk Management Strategies 3.20% Show more
Research options trader duties and responsibilities
An options trader's responsibilities include automating trade allocation and reconciliation procedures using VBA programming, advising institutional and retail option traders on advanced strategies and hedge techniques, and executing domestic/global equities securities with minimal market impact. They also perform detailed analysis, market/economic indicator research, and evaluation on technical numbers and historical data. Additionally, they design and implement automated high-frequency etf spread trades, train extensively in option pricing risk management, and generate steady monthly net PNL.
- Enact, and manage equity block desk operation and set up floor broker network on NYSE.
- Create VBA applications to automate basic trading functions and administration functions such as reorganization tenders and trade pricing issues.
- Manage business, sales, marketing, international negotiation and communication for a commodities business.
- Trade options profitably on screen markets and trade complex option spreads via telephone brokers at the CBOE and CME.
Get options trader experience
Prepare your options trader resume
When your background is strong enough, you can start writing your options trader resume.
You can use Zippia's AI resume builder to make the resume writing process easier while also making sure that you include key information that hiring managers expect to see on an options trader resume. You'll find resume tips and examples of skills, responsibilities, and summaries, all provided by Zippi, your career sidekick.
Choose From 10+ Customizable Options Trader Resume templates
Build a professional
Options Trader
resume in minutes. Browse through our resume examples to identify the best way to word your resume.
Then choose from 10+ resume templates to create your Options Trader resume.Apply for options trader jobs
Now it's time to start searching for an options trader job. Consider the tips below for a successful job search:
- Browse job boards for relevant postings
- Consult your professional network
- Reach out to companies you're interested in working for directly
- Watch out for job scams
Are you an Options Trader?
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Average options trader salary
The average Options Trader salary in the United States is $110,139 per year or $53 per hour. Options trader salaries range between $65,000 and $185,000 per year.
Average
Options Trader
Salary
$110,139Yearly
$52.95
hourly
More options trader salary info
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Updated March 14, 2024
Zippia Team
Editorial Staff
The Zippia Research Team has spent countless hours reviewing resumes, job postings, and government data to determine what goes into getting a job in each phase of life. Professional writers and data scientists comprise the Zippia Research Team.
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Updated March 14, 2024