WEBVTT - Will The Options Market Crash The Stock Market?

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<v Speaker 1>An illegal alien from Guatemala charged with raping a child

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<v Speaker 1>in Massachusetts. An MS thirteen gang member from Al Salvador

0:00:07.720 --> 0:00:11.840
<v Speaker 1>accused of murdering a Texas man of Venezuelan charged with

0:00:11.920 --> 0:00:15.840
<v Speaker 1>filming and selling child pornography in Michigan. These are just

0:00:15.920 --> 0:00:19.680
<v Speaker 1>some of the heinous migrant criminals caught because of President

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<v Speaker 1>Donald J. Trump's leadership. I'm Christy nom the United States

0:00:23.320 --> 0:00:28.120
<v Speaker 1>Secretary of Homeland Security. Under President Trump, attempted illegal border

0:00:28.160 --> 0:00:31.680
<v Speaker 1>crossings are at the lowest levels ever recorded, and over

0:00:31.760 --> 0:00:34.960
<v Speaker 1>one hundred thousand illegal aliens have been arrested. If you

0:00:35.040 --> 0:00:38.920
<v Speaker 1>are here illegally, your next you will be fined nearly

0:00:39.000 --> 0:00:43.000
<v Speaker 1>one thousand dollars a day, imprisoned, and deported. You will

0:00:43.040 --> 0:00:46.680
<v Speaker 1>never return. But if you register using our CBP home

0:00:46.720 --> 0:00:50.120
<v Speaker 1>app and leave now, you could be allowed to return legally.

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<v Speaker 1>Do what's right. Leave now. Under President Trump, America's laws,

0:00:55.400 --> 0:00:57.840
<v Speaker 1>border and families will be protected.

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<v Speaker 2>Sponsored by the United States Department of Homeland Security.

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<v Speaker 3>Let's talk about stock options. Will the options market crash,

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<v Speaker 3>the stock market and index bubble collapse the stock market?

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<v Speaker 3>So JP Morgan, analyst, states that the national value of

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<v Speaker 3>options has surpassed the volume of the stock market and

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<v Speaker 3>a collapse could occur soon. So all right, stock options

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<v Speaker 3>very popular, became very popular during the pandemic. If anybody

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<v Speaker 3>doesn't know what the stock option is, that's when you are,

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<v Speaker 3>for lack of a better term, you're kind of betting

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<v Speaker 3>on the future price of a stock. So the stock

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<v Speaker 3>is at one hundred dollars, you're buying an option for

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<v Speaker 3>May twenty twenty four for it to get the two

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<v Speaker 3>hundred dollars. And it's if it trends in the right direction,

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<v Speaker 3>then you can make money. If it trends downwards, then

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<v Speaker 3>you can lose money, and you can actually end up

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<v Speaker 3>losing all of your money. So options became you know,

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<v Speaker 3>it's a way to earn a lot more money than

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<v Speaker 3>investing in just traditional stocks and just riding it up.

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<v Speaker 3>But it's also a lot more volatile as well. So

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<v Speaker 3>what are we making about this option situation?

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<v Speaker 2>This is really tricky.

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<v Speaker 4>I was talking to Liz about this over the weekend

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<v Speaker 4>and partially today. When a couple of things I always

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<v Speaker 4>want you guys to look for when they're promoting any

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<v Speaker 4>asset class derivative coin product, who is going to be

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<v Speaker 4>the winner, and if things fall apart, who would they

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<v Speaker 4>blame as a result, I will not be surprised when

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<v Speaker 4>this recession begins to happen that if they do not

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<v Speaker 4>blame option traders, robinhood traders, and speculators as part of

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<v Speaker 4>the reason why the market fell apart. So when a

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<v Speaker 4>notion of value is higher than the actual volume of

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<v Speaker 4>buying stocks long term, it just really means that more

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<v Speaker 4>people are trading than they are are buying long term.

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<v Speaker 4>That's really tricky because a lot of people are doing

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<v Speaker 4>like options that are expiring in the same day.

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<v Speaker 2>So if you hit it, oh my god, you make

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<v Speaker 2>a killing. Right.

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<v Speaker 4>I've seen some people make two three thousand percent in

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<v Speaker 4>a day that I've also seen some people get.

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<v Speaker 2>Margin called right.

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<v Speaker 4>But the reason why most people are trading so much

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<v Speaker 4>goes back to what we talked about on a previous

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<v Speaker 4>episode is that once we came off that gold standard like,

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<v Speaker 4>it began to road an overall dollar economy, and people

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<v Speaker 4>don't trust the stock market or the overall economy because

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<v Speaker 4>for the first time in history, every signal of a

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<v Speaker 4>recession is there and they're actively telling us no, everything's started.

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<v Speaker 4>This is one of the strongest job markets we've ever

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<v Speaker 4>had in history. I'm like, what job market are you

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<v Speaker 4>looking at? So when there's a disconnect or dispersion in

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<v Speaker 4>truth from the media versus what is really occurring, people

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<v Speaker 4>are saying, hey, let me run and get a bag

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<v Speaker 4>right now. As a result, if the market does crash,

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<v Speaker 4>it's going to make the margins on futures go up.

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<v Speaker 4>It's going to make the margins on option it's going

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<v Speaker 4>to go up. Some of these companies will be wrecking

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<v Speaker 4>bud business. And of course, I once again I'll always

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<v Speaker 4>say it, as soon as we got into crypto, Uber, Airbnb,

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<v Speaker 4>crypto NFT media, they found a way to crash every

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<v Speaker 4>market at the same time while profiting from it at

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<v Speaker 4>the same time. Off of us, we have to be

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<v Speaker 4>very careful for all my options. Traders, Please be careful

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<v Speaker 4>over the next three to four months, and there will

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<v Speaker 4>be regulation that comes out around this as an active

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<v Speaker 4>quote unquote safety when this market does crash. Now, on

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<v Speaker 4>the other side, I do think the same thing is

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<v Speaker 4>going to happen on the indexes. I think Vanguard will

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<v Speaker 4>be safe. But as a result of all this auto

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<v Speaker 4>and robo investing over the last ten years and with

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<v Speaker 4>interest rates being low, when all of those companies like

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<v Speaker 4>Well Run and Well Simple got launched, will not be surprised.

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<v Speaker 4>In the next four years we see a smaller index.

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<v Speaker 3>Erners.

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<v Speaker 2>What's up.

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<v Speaker 1>An illegal alien from Guatemala charged with raping a child

0:06:59.760 --> 0:07:03.000
<v Speaker 1>in men, Massachusetts. An MS thirteen gang member from Al

0:07:03.080 --> 0:07:07.880
<v Speaker 1>Salvador accused of murdering a Texas man of Venezuelan charged

0:07:07.920 --> 0:07:11.840
<v Speaker 1>with filming and selling child pornography in Michigan. These are

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<v Speaker 1>just some of the heinous migrant criminals caught because of

0:07:15.400 --> 0:07:19.119
<v Speaker 1>President Donald J. Trump's leadership. I'm Christy nom the United

0:07:19.120 --> 0:07:23.880
<v Speaker 1>States Secretary of Homeland Security. Under President Trump, attempted illegal

0:07:23.920 --> 0:07:27.600
<v Speaker 1>border crossings are at the lowest levels ever recorded, and

0:07:27.640 --> 0:07:31.000
<v Speaker 1>over one hundred thousand illegal aliens have been arrested. If

0:07:31.000 --> 0:07:34.640
<v Speaker 1>you are here illegally, your next you will be fined

0:07:34.720 --> 0:07:38.840
<v Speaker 1>nearly one thousand dollars a day, imprisoned, and deported. You

0:07:38.880 --> 0:07:42.440
<v Speaker 1>will never return. But if you register using our CBP

0:07:42.600 --> 0:07:45.320
<v Speaker 1>home app and leave now, you could be allowed to

0:07:45.400 --> 0:07:50.200
<v Speaker 1>return legally. Do what's right. Leave now. Under President Trump,

0:07:50.360 --> 0:07:53.520
<v Speaker 1>America's laws border and families will.

0:07:53.360 --> 0:07:56.160
<v Speaker 2>Be protected sponsored by the United States Department of Homeland Security.

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<v Speaker 4>Collapse as a result, and it's happened before you can

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<v Speaker 4>go look at SVXY back in the day, there have

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<v Speaker 4>been some indexes or ETFs that are drawing down eighty

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<v Speaker 4>percent in one month because of liquidity issues.

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<v Speaker 5>So please, I mean, if you look at the percentages

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<v Speaker 5>of people that actually have profitable option trades, it's like

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<v Speaker 5>less than ten percent, right, less than five percent. I

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<v Speaker 5>believe it's one of those things, man, you when you

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<v Speaker 5>speak about regulation, it makes me think and I always

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<v Speaker 5>thought this, right, if people are obviously making money, there's

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<v Speaker 5>going to be a pullback, and we're going to try

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<v Speaker 5>to get as many people out of the space if

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<v Speaker 5>you look at the value numbers, right, but what does

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<v Speaker 5>regulation look like? Does it become a new barrier to

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<v Speaker 5>even trade derivatives? Does it become right, Yo, you have

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<v Speaker 5>to have a certain amount of money to even become

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<v Speaker 5>an optionent trated. Those are the type I'm looking and

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<v Speaker 5>I'm like, Okay, I'm watching the space. I'm like, all right,

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<v Speaker 5>something's coming. Something's coming because you're right, like, people are

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<v Speaker 5>looking at it. I mean we could just be honest.

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<v Speaker 5>They're looking at it because of the percentage of gains

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<v Speaker 5>in a short period of time. And that's great, But

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<v Speaker 5>what happens when it goes the wrong way? And quote

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<v Speaker 5>unquote you lose shirt, right, Like, you lose it all.

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<v Speaker 5>Like even today a great example, right, we had a

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<v Speaker 5>hell of a swing in an astec. I had a

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<v Speaker 5>call that was up I think thirty two hundred dollars

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<v Speaker 5>by four fifteen when I checked it was down eighty

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<v Speaker 5>one negative eighty one dollars. It was a hell of

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<v Speaker 5>a swing. And these are the things, like there's so

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<v Speaker 5>much volatility. I mean, we always talked to people about

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<v Speaker 5>not putting, you know, everything in your portfolio into options, right,

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<v Speaker 5>because the volatility is too strong and most people aren't

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<v Speaker 5>even experienced, and so it can you make money, yes,

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<v Speaker 5>can you lose money yes, be very very very cautious

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<v Speaker 5>and make sure that you do your due diligence trading

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<v Speaker 5>daily options. That that's for I mean, we talked about it.

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<v Speaker 5>That's for live man like you really should be experienced

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<v Speaker 5>if you do it, even if you're doing weekly calls

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<v Speaker 5>like I don't suggest it. I still do it myself because,

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<v Speaker 5>like I said, again, there's no way to predict the market.

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<v Speaker 5>If there was, I mean, obviously there would pee a

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<v Speaker 5>lot more wealthy people. So be very careful man trading,

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<v Speaker 5>hask civil risk.

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<v Speaker 4>Yeah, and I know I beat up on options before.

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<v Speaker 4>That's why I brought up the ETF example. You guys

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<v Speaker 4>can go look at the ticker svxy, which is pro

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<v Speaker 4>shares short vix ETF. From in twenty sixteen, it was

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<v Speaker 4>at seventy five dollars and fifty five cent. By twenty

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<v Speaker 4>eighteen it got to five hundred and fifty seven dollars.

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<v Speaker 4>I remember people were riding high. All of a sudden,

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<v Speaker 4>all the volume went out of it. It went from

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<v Speaker 4>in one quarter from five to thirty three all the

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<v Speaker 4>way down fifty six dollars in one quarter that was

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<v Speaker 4>in twenty eighteen and twenty twenty three.

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<v Speaker 2>Pars to sixty six dollars.

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<v Speaker 4>So if an institution or bank moves all of their

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<v Speaker 4>money out of an asset class, there's not enough retail

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<v Speaker 4>investors to keep it afloat. Always been alive. It's always

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<v Speaker 4>been a misconception. I don't want you guys to end

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<v Speaker 4>up in being cannon are for one of these atfs

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<v Speaker 4>or options as a result, And there is even in

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<v Speaker 4>the morning when they're actually on the floor and we've

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<v Speaker 4>been there, there aren't as many people even on the

0:11:10.080 --> 0:11:14.360
<v Speaker 4>floor traded anymore like eleven o'clock. Whenever I go see

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<v Speaker 4>Peter and go see everybody, it's quiet. The volume has

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<v Speaker 4>come out so much because of algorithms. Please be careful,

0:11:22.080 --> 0:11:25.000
<v Speaker 4>and a lot of these options, the market makers are

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<v Speaker 4>better than against you, and the algorithms are well.

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<v Speaker 3>Please be careful, all right, Be mindful. Be mindful, ladies

0:11:33.440 --> 0:11:36.840
<v Speaker 3>and gentlemen. It's the only thing.

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<v Speaker 4>And we will monitor the situation.

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<v Speaker 3>My graduates from my school being forced back drop drop

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<v Speaker 3>drop backdrop.

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<v Speaker 1>An illegal alien from Guatemala charged with raping a child

0:12:04.240 --> 0:12:08.040
<v Speaker 1>in Massachusetts. An MS thirteen gang member from Al Salvador

0:12:08.280 --> 0:12:12.440
<v Speaker 1>accused of murdering a Texas man of Venezuelan charged with

0:12:12.480 --> 0:12:16.400
<v Speaker 1>filming and selling child pornography in Michigan. These are just

0:12:16.480 --> 0:12:20.240
<v Speaker 1>some of the heinous migrant criminals caught because of President

0:12:20.280 --> 0:12:23.880
<v Speaker 1>Donald J. Trump's leadership. I'm Christy nom the United States

0:12:23.880 --> 0:12:28.680
<v Speaker 1>Secretary of Homeland Security. Under President Trump, attempted illegal border

0:12:28.720 --> 0:12:32.240
<v Speaker 1>crossings are at the lowest levels ever recorded, and over

0:12:32.320 --> 0:12:35.520
<v Speaker 1>one hundred thousand illegal aliens have been arrested. If you

0:12:35.600 --> 0:12:39.480
<v Speaker 1>are here illegally, your next you will be fined nearly

0:12:39.559 --> 0:12:43.560
<v Speaker 1>one thousand dollars a day, imprisoned, and deported. You will

0:12:43.600 --> 0:12:47.240
<v Speaker 1>never return. But if you register using our CBP home

0:12:47.280 --> 0:12:50.679
<v Speaker 1>app and leave now, you could be allowed to return legally.

0:12:51.040 --> 0:12:55.760
<v Speaker 1>Do what's right. Leave now. Under President Trump, America's laws,

0:12:55.960 --> 0:12:58.400
<v Speaker 1>border and families will be protected.

0:12:58.480 --> 0:13:00.600
<v Speaker 2>Sponsored by the United States Department of Mansecurity,