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Will The Options Market Crash The Stock Market? · Earn Your Leisure

• 0:00
  Speaker 1: An illegal alien from Guatemala charged with raping a child
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  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
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  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
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  Speaker 1: filming and selling child pornography in Michigan. These are just
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  Speaker 1: some of the heinous migrant criminals caught because of President
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  Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
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  Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
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  Speaker 1: crossings are at the lowest levels ever recorded, and over
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  Speaker 1: one hundred thousand illegal aliens have been arrested. If you
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  Speaker 1: are here illegally, your next you will be fined nearly
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  Speaker 1: one thousand dollars a day, imprisoned, and deported. You will
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  Speaker 1: never return. But if you register using our CBP home
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  Speaker 1: app and leave now, you could be allowed to return legally.
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  Speaker 1: Do what's right. Leave now. Under President Trump, America's laws,
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  Speaker 1: border and families will be protected.
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  Speaker 2: Sponsored by the United States Department of Homeland Security.
• 1:00
  Speaker 3: Let's talk about stock options. Will the options market crash,
• 1:07
  Speaker 3: the stock market and index bubble collapse the stock market?
• 1:13
  Speaker 3: So JP Morgan, analyst, states that the national value of
• 1:18
  Speaker 3: options has surpassed the volume of the stock market and
• 1:24
  Speaker 3: a collapse could occur soon. So all right, stock options
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  Speaker 3: very popular, became very popular during the pandemic. If anybody
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  Speaker 3: doesn't know what the stock option is, that's when you are,
• 1:38
  Speaker 3: for lack of a better term, you're kind of betting
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  Speaker 3: on the future price of a stock. So the stock
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  Speaker 3: is at one hundred dollars, you're buying an option for
• 1:48
  Speaker 3: May twenty twenty four for it to get the two
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  Speaker 3: hundred dollars. And it's if it trends in the right direction,
• 1:54
  Speaker 3: then you can make money. If it trends downwards, then
• 1:57
  Speaker 3: you can lose money, and you can actually end up
• 1:59
  Speaker 3: losing all of your money. So options became you know,
• 2:03
  Speaker 3: it's a way to earn a lot more money than
• 2:06
  Speaker 3: investing in just traditional stocks and just riding it up.
• 2:08
  Speaker 3: But it's also a lot more volatile as well. So
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  Speaker 3: what are we making about this option situation?
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  Speaker 2: This is really tricky.
• 2:17
  Speaker 4: I was talking to Liz about this over the weekend
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  Speaker 4: and partially today. When a couple of things I always
• 2:24
  Speaker 4: want you guys to look for when they're promoting any
• 2:27
  Speaker 4: asset class derivative coin product, who is going to be
• 2:32
  Speaker 4: the winner, and if things fall apart, who would they
• 2:35
  Speaker 4: blame as a result, I will not be surprised when
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  Speaker 4: this recession begins to happen that if they do not
• 2:44
  Speaker 4: blame option traders, robinhood traders, and speculators as part of
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  Speaker 4: the reason why the market fell apart. So when a
• 2:52
  Speaker 4: notion of value is higher than the actual volume of
• 2:56
  Speaker 4: buying stocks long term, it just really means that more
• 2:58
  Speaker 4: people are trading than they are are buying long term.
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  Speaker 4: That's really tricky because a lot of people are doing
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  Speaker 4: like options that are expiring in the same day.
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  Speaker 2: So if you hit it, oh my god, you make
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  Speaker 2: a killing. Right.
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  Speaker 4: I've seen some people make two three thousand percent in
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  Speaker 4: a day that I've also seen some people get.
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  Speaker 2: Margin called right.
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  Speaker 4: But the reason why most people are trading so much
• 3:22
  Speaker 4: goes back to what we talked about on a previous
• 3:25
  Speaker 4: episode is that once we came off that gold standard like,
• 3:29
  Speaker 4: it began to road an overall dollar economy, and people
• 3:33
  Speaker 4: don't trust the stock market or the overall economy because
• 3:36
  Speaker 4: for the first time in history, every signal of a
• 3:39
  Speaker 4: recession is there and they're actively telling us no, everything's started.
• 3:42
  Speaker 4: This is one of the strongest job markets we've ever
• 3:44
  Speaker 4: had in history. I'm like, what job market are you
• 3:46
  Speaker 4: looking at? So when there's a disconnect or dispersion in
• 3:51
  Speaker 4: truth from the media versus what is really occurring, people
• 3:55
  Speaker 4: are saying, hey, let me run and get a bag
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  Speaker 4: right now. As a result, if the market does crash,
• 4:01
  Speaker 4: it's going to make the margins on futures go up.
• 4:03
  Speaker 4: It's going to make the margins on option it's going
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  Speaker 4: to go up. Some of these companies will be wrecking
• 4:08
  Speaker 4: bud business. And of course, I once again I'll always
• 4:11
  Speaker 4: say it, as soon as we got into crypto, Uber, Airbnb,
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  Speaker 4: crypto NFT media, they found a way to crash every
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  Speaker 4: market at the same time while profiting from it at
• 4:25
  Speaker 4: the same time. Off of us, we have to be
• 4:28
  Speaker 4: very careful for all my options. Traders, Please be careful
• 4:34
  Speaker 4: over the next three to four months, and there will
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  Speaker 4: be regulation that comes out around this as an active
• 4:38
  Speaker 4: quote unquote safety when this market does crash. Now, on
• 4:41
  Speaker 4: the other side, I do think the same thing is
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  Speaker 4: going to happen on the indexes. I think Vanguard will
• 4:48
  Speaker 4: be safe. But as a result of all this auto
• 4:51
  Speaker 4: and robo investing over the last ten years and with
• 4:54
  Speaker 4: interest rates being low, when all of those companies like
• 4:56
  Speaker 4: Well Run and Well Simple got launched, will not be surprised.
• 5:00
  Speaker 4: In the next four years we see a smaller index.
• 5:05
  Speaker 3: Erners.
• 5:06
  Speaker 2: What's up.
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• 6:56
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 6:59
  Speaker 1: in men, Massachusetts. An MS thirteen gang member from Al
• 7:03
  Speaker 1: Salvador accused of murdering a Texas man of Venezuelan charged
• 7:07
  Speaker 1: with filming and selling child pornography in Michigan. These are
• 7:11
  Speaker 1: just some of the heinous migrant criminals caught because of
• 7:15
  Speaker 1: President Donald J. Trump's leadership. I'm Christy nom the United
• 7:19
  Speaker 1: States Secretary of Homeland Security. Under President Trump, attempted illegal
• 7:23
  Speaker 1: border crossings are at the lowest levels ever recorded, and
• 7:27
  Speaker 1: over one hundred thousand illegal aliens have been arrested. If
• 7:31
  Speaker 1: you are here illegally, your next you will be fined
• 7:34
  Speaker 1: nearly one thousand dollars a day, imprisoned, and deported. You
• 7:38
  Speaker 1: will never return. But if you register using our CBP
• 7:42
  Speaker 1: home app and leave now, you could be allowed to
• 7:45
  Speaker 1: return legally. Do what's right. Leave now. Under President Trump,
• 7:50
  Speaker 1: America's laws border and families will.
• 7:53
  Speaker 2: Be protected sponsored by the United States Department of Homeland Security.
• 7:56
  Speaker 4: Collapse as a result, and it's happened before you can
• 7:59
  Speaker 4: go look at SVXY back in the day, there have
• 8:02
  Speaker 4: been some indexes or ETFs that are drawing down eighty
• 8:04
  Speaker 4: percent in one month because of liquidity issues.
• 8:08
  Speaker 5: So please, I mean, if you look at the percentages
• 8:10
  Speaker 5: of people that actually have profitable option trades, it's like
• 8:15
  Speaker 5: less than ten percent, right, less than five percent. I
• 8:18
  Speaker 5: believe it's one of those things, man, you when you
• 8:22
  Speaker 5: speak about regulation, it makes me think and I always
• 8:24
  Speaker 5: thought this, right, if people are obviously making money, there's
• 8:27
  Speaker 5: going to be a pullback, and we're going to try
• 8:29
  Speaker 5: to get as many people out of the space if
• 8:30
  Speaker 5: you look at the value numbers, right, but what does
• 8:32
  Speaker 5: regulation look like? Does it become a new barrier to
• 8:35
  Speaker 5: even trade derivatives? Does it become right, Yo, you have
• 8:38
  Speaker 5: to have a certain amount of money to even become
• 8:40
  Speaker 5: an optionent trated. Those are the type I'm looking and
• 8:43
  Speaker 5: I'm like, Okay, I'm watching the space. I'm like, all right,
• 8:45
  Speaker 5: something's coming. Something's coming because you're right, like, people are
• 8:47
  Speaker 5: looking at it. I mean we could just be honest.
• 8:49
  Speaker 5: They're looking at it because of the percentage of gains
• 8:52
  Speaker 5: in a short period of time. And that's great, But
• 8:55
  Speaker 5: what happens when it goes the wrong way? And quote
• 8:59
  Speaker 5: unquote you lose shirt, right, Like, you lose it all.
• 9:02
  Speaker 5: Like even today a great example, right, we had a
• 9:05
  Speaker 5: hell of a swing in an astec. I had a
• 9:08
  Speaker 5: call that was up I think thirty two hundred dollars
• 9:11
  Speaker 5: by four fifteen when I checked it was down eighty
• 9:15
  Speaker 5: one negative eighty one dollars. It was a hell of
• 9:18
  Speaker 5: a swing. And these are the things, like there's so
• 9:20
  Speaker 5: much volatility. I mean, we always talked to people about
• 9:24
  Speaker 5: not putting, you know, everything in your portfolio into options, right,
• 9:28
  Speaker 5: because the volatility is too strong and most people aren't
• 9:31
  Speaker 5: even experienced, and so it can you make money, yes,
• 9:36
  Speaker 5: can you lose money yes, be very very very cautious
• 9:41
  Speaker 5: and make sure that you do your due diligence trading
• 9:44
  Speaker 5: daily options. That that's for I mean, we talked about it.
• 9:47
  Speaker 5: That's for live man like you really should be experienced
• 9:49
  Speaker 5: if you do it, even if you're doing weekly calls
• 9:51
  Speaker 5: like I don't suggest it. I still do it myself because,
• 9:56
  Speaker 5: like I said, again, there's no way to predict the market.
• 10:01
  Speaker 5: If there was, I mean, obviously there would pee a
• 10:03
  Speaker 5: lot more wealthy people. So be very careful man trading,
• 10:06
  Speaker 5: hask civil risk.
• 10:09
  Speaker 4: Yeah, and I know I beat up on options before.
• 10:11
  Speaker 4: That's why I brought up the ETF example. You guys
• 10:14
  Speaker 4: can go look at the ticker svxy, which is pro
• 10:17
  Speaker 4: shares short vix ETF. From in twenty sixteen, it was
• 10:23
  Speaker 4: at seventy five dollars and fifty five cent. By twenty
• 10:26
  Speaker 4: eighteen it got to five hundred and fifty seven dollars.
• 10:29
  Speaker 4: I remember people were riding high. All of a sudden,
• 10:31
  Speaker 4: all the volume went out of it. It went from
• 10:33
  Speaker 4: in one quarter from five to thirty three all the
• 10:37
  Speaker 4: way down fifty six dollars in one quarter that was
• 10:41
  Speaker 4: in twenty eighteen and twenty twenty three.
• 10:43
  Speaker 2: Pars to sixty six dollars.
• 10:46
  Speaker 4: So if an institution or bank moves all of their
• 10:49
  Speaker 4: money out of an asset class, there's not enough retail
• 10:52
  Speaker 4: investors to keep it afloat. Always been alive. It's always
• 10:55
  Speaker 4: been a misconception. I don't want you guys to end
• 10:58
  Speaker 4: up in being cannon are for one of these atfs
• 11:01
  Speaker 4: or options as a result, And there is even in
• 11:04
  Speaker 4: the morning when they're actually on the floor and we've
• 11:07
  Speaker 4: been there, there aren't as many people even on the
• 11:10
  Speaker 4: floor traded anymore like eleven o'clock. Whenever I go see
• 11:14
  Speaker 4: Peter and go see everybody, it's quiet. The volume has
• 11:18
  Speaker 4: come out so much because of algorithms. Please be careful,
• 11:22
  Speaker 4: and a lot of these options, the market makers are
• 11:25
  Speaker 4: better than against you, and the algorithms are well.
• 11:27
  Speaker 3: Please be careful, all right, Be mindful. Be mindful, ladies
• 11:33
  Speaker 3: and gentlemen. It's the only thing.
• 11:36
  Speaker 4: And we will monitor the situation.
• 11:41
  Speaker 3: My graduates from my school being forced back drop drop
• 11:48
  Speaker 3: drop backdrop.
• 12:00
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 12:04
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 12:08
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 12:12
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 12:16
  Speaker 1: some of the heinous migrant criminals caught because of President
• 12:20
  Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
• 12:23
  Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 12:28
  Speaker 1: crossings are at the lowest levels ever recorded, and over
• 12:32
  Speaker 1: one hundred thousand illegal aliens have been arrested. If you
• 12:35
  Speaker 1: are here illegally, your next you will be fined nearly
• 12:39
  Speaker 1: one thousand dollars a day, imprisoned, and deported. You will
• 12:43
  Speaker 1: never return. But if you register using our CBP home
• 12:47
  Speaker 1: app and leave now, you could be allowed to return legally.
• 12:51
  Speaker 1: Do what's right. Leave now. Under President Trump, America's laws,
• 12:55
  Speaker 1: border and families will be protected.
• 12:58
  Speaker 2: Sponsored by the United States Department of Mansecurity,