With volatility and immense opportunity present in the options market, Benzinga is set to host the Online Options Boot Camp Saturday, April 18, providing traders a chance to watch industry professionals talk strategy and tips for how to approach the coming months.
Market Rebellion co-founder and CNBC contributor Jon Najarian spoke with Benzinga about the Boot Camp and his plan for navigating the volatile markets.
About Jon Najarian, Market Rebellion
Najarian was a linebacker for the Chicago Bears prior to trading in the pits of the Chicago Board Options Exchange. He worked as a floor trader for over 20 years and later founded Mercury Trading, a market-making firm, leveraging powerful algorithms to enhance his firm’s trading.
The firm grew so big that Najarian looked for new avenues to teach traders how to best trade and act on algorithmic insights, he said.
“We didn’t have enough instructors. What we did was, we took all of our modules, like basic options pricing, how to trade calls, how to trade puts, basically risk management, and we started putting them on tape.”
After years in the business of educating and institutional trading, Najarian, alongside his brother Pete, condensed their extensive experience into digestible online courses offered via the Market Rebellion community.
“We just made the education more basic because it needed to get to people that never traded up to speed,” Najarian said. “We put all of our courses online, so people can take them at their leisure, 24 hours a day.”
Najarian On Uncovering Actionable Insights
“We’re all sort of in a really dark cave when it comes to the stock market,” he said. “There are people with a lot more information and systems than us. If we can follow their footprints, then that’s how we get out of the caves.”
Smart people with large trading budgets have the ability to attend analyst meetings and acquire information that's unknown to the average trader, Najarian said.
At Market Rebellion, Najarian and his brother analyze algorithmically derived insights to trade markets more effectively.
In the coming months, Najarian said he plans to get more personal with the community, teaching new and experienced traders the secrets behind successful strategy execution during the Sept. 25-26 Market Rebellion Trading Conference at the ARIA Resort & Casino, Las Vegas, Nevada.
Why Are Markets Volatile?
“The traders are trading from home, and they don't have nearly the same confidence,” Najarian said of the current market turmoil.
The volatility stems from trading floor shutdowns at institutions like JPMorgan Chase & Co. JPM, Goldman Sachs Group Inc GS, and Morgan Stanley MS, he said.
As a result, most traders are working remotely and in skeleton crews, widening spreads and increasing volatility.
Two major factors that will determine how markets perform in the coming months include a slowing in the number of new coronavirus cases as well as the brevity of the economic shutdown, Najarian said.
Despite the low confidence environment, the market's anticipation of a recovery has trumped negative economic figures and news, quickly recouping this year’s losses, he said.
“[We're] three weeks from reopening — that’s my gut,” Najarian said. “I think that's going to be a further catalyst for more upside in the market.”
Trading The 2020 Market Crash
On Saturday, Najarian and others will help traders uncover strategies that work best in uncertain environments during the virtual Benzinga event.
“I will try to get across some of the best strategies that are working in this environment, right now,” he said.
“A lot of folks say just because volatility is high, you have to sell premium. I’m going to demonstrate why that’s not necessarily the smart move. Sometimes, when the volatility is high, it’s telling you something completely different than selling premium. It might not be buying premium, but maybe it’s time to really get directional with your trades.”
Click here to learn more about the Benzinga Options Bootcamp.
Benzinga file photo.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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