Peter and Jon Najarian, co-founders of Investitute, are the best known faces for options trading. In this wide-ranging interview with Real Vision veteran Tony Greer, the brothers explain not only why they left football for finance, but why they eventually left the trading floor entirely. The finance industry has gone through a technological revolution via algorithmic trading, passive investing, and AI. The brothers relive the experience of that revolution and outline how to take advantage of its future. Through all the change, they still see plenty of opportunity for young entrants in the business. Filmed in New York on March 14, 2019.
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About The Interview:
The smartest minds in finance sit down for incredibly deep-diving discussions. Peer-to-peer conversations between the rock stars of the financial world.
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The Market Monsters' Momentum Shift (w/ Jon & Pete Najarian) | Interview
For the full transcript:
They're basically hitting you so fast that you can lose more money in half a second than you can make in a month.
And the good and bad of electronic trading is it makes the markets that much tighter. Which is great for the rest of the world, not so good for a guy who's in the industry of trying to take that money in between, right?
The XIV failed because it was built to fail. That was the dumbest product. The only way you can hedge that is with your ego, because there's no way you can stay up with.
Hi, this is Tony Greer, and we're going to talk to two extra-large personalities from CNBC today, Pete and Jon Najarian. We're going to find out how they got their start on the floor in Chicago, and we're going to find out about how they founded their monster brand of financial platforms, and we're going to find out what they had planned for Institute's future. Let's get started.
So, as a student of the market, this is an honor and a privilege for me to speak with you guys.
70 years of trading experience under your belts, accomplished authors, you're serial entrepreneurs, you've started a number of platforms and products, and sold them to relevant players in the markets.
I think I'd like to start where you guys started, and where I started, down on the floor of the exchanges, in open outcry. So if you would tell me a little bit about, number 1, what got you down to open outcry, and then what was your path throughout the open outcry experience that led you to start starting these products? You know-- where do you guys want to start talking about your floor life.
I was down first, so I'll start. Because everybody always asks, Tony, well, are you guys twins?
And I always say, no, 6 years apart.
I'm not sure if that's a flattering thing for me or not.
Flattering for me.
Is it a volatile spread, or does that spread look pretty much tied to 6 years the whole time? It looks good. You guys look great. That looks right.
And I came out of playing football for the Bears-- played 4 games, 4, for the Chicago Bears, got cut. I don't know why I was so surprised when I got cut. I was surprised only because I played in the preseason, and Singletary held out on his contract. He was the guy they drafted in the second round. They drafted Van Horn in the first. Both these guys started and had long pro careers, and Singletary is in the Hall of Fame.
But once they figure out his skill set, which was immense, they decided to cut me. And so like I say, I shouldn't have been so surprised, Tony, when I heard that--
--knock on the door, but I was, for whatever reason.