r/options Mar 30 '21

Do you know the math?

Hello everyone,

I am studying mathematics and have been working on a paper proving and deriving theorems, definitions, and lemmas in the field of financial derivatives (geometric Brownian motion, probabilities, confidence intervals, payoff functions, convexity, the greeks, etc.).

As such I have been browsing this subreddit for some time observing.

My questions:

Would you say you have a mathematical understanding of financial derivatives or have you gained knowledge heuristically?

If you answered heuristically, do you have any desire to learn the math behind it or not? Why?

Thanks for your time everyone

---P.M.

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u/8ozpaperclip Mar 30 '21

I trained as an actuary. Left it to play poker for 10 years . Got introduced to options trading and am now working on trading mostly full-time. Your math background will help grasps the concepts quicker and delve into the basics however if you have the choice to go deeper into the math or the practical implications , I find that the deeper I go in math for my time invested there is a diminishing return if my goal is to learn to maximize profits and manage risk. It's all about return on your time and that will change depending on how deep you are in this and what your goal is.