Alpha Trader #10 - Trading game has changed, but alpha remains - Jon Najarian chats with Alpha Trader
Dec 17, 2019•30 min
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Episode description
Alpha Trader's 10th episode features longtime options trader Jon Najarian. Well-known for his CNBC appearances, Jon (along with his brother) is currently hanging his shingle at Market Rebellion.
Don't even try to profit by reacting to the headlines, says Najarian. The machines are way ahead of even the most sophisticated traders. Instead, he says, have a plan in place for what names/sectors are going to be able to sustain a move after the headline has worn off.
Getting to specifics, Najarian has put in place his plan for the trade war. He thinks there will be a resolution (and indeed both sides appeared to acknowledge a deal while this episode was being taped), but also that China - its economy under pressure thanks in part to trade - will continue to pump massive amounts of liquidity into the markets. His largest derivative position at this time is thus the iShares Emerging Markets ETF (EEM).
Najarian is a big fan of the CME's newish Micro E-mini futures contracts, which allow individual investors to get in the futures game with far lower capital than even the E-mini futures. And it's not just about opening a position with a very modest margin requirement, but small players can now more easily tweak those positions as the time and price changes.
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Don't even try to profit by reacting to the headlines, says Najarian. The machines are way ahead of even the most sophisticated traders. Instead, he says, have a plan in place for what names/sectors are going to be able to sustain a move after the headline has worn off.
Getting to specifics, Najarian has put in place his plan for the trade war. He thinks there will be a resolution (and indeed both sides appeared to acknowledge a deal while this episode was being taped), but also that China - its economy under pressure thanks in part to trade - will continue to pump massive amounts of liquidity into the markets. His largest derivative position at this time is thus the iShares Emerging Markets ETF (EEM).
Najarian is a big fan of the CME's newish Micro E-mini futures contracts, which allow individual investors to get in the futures game with far lower capital than even the E-mini futures. And it's not just about opening a position with a very modest margin requirement, but small players can now more easily tweak those positions as the time and price changes.
Learn more about your ad choices. Visit megaphone.fm/adchoices
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