This Is How Derivatives Trading Swallowed the Entire Market

Odd Lots

Bloomberg

News, Investing, Business, News Commentary, Business News

4.4 • 1.6K Ratings

🗓️ 17 February 2025

⏱️ 56 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

For a long time, the world of derivatives trading was a niche thing, largely occupied by professional investors who used them for hedging purposes. During the pandemic and the Robinhood boom, the retail masses started discovering them, and activity exploded. Since then, the use of options, swaps and other levered positions has grown among both individual traders and the big professionals on Wall Street. There are countless influencers on social media promising "guaranteed" returns from various options selling strategies. New ETFs have been launched that embed derivatives inside them. And institutions, which might historically have employed simple, sleepy investments, are now making them part of their core mix. So how did this happen, and what effect is it having on the market? On this episode, we speak with Benn Eifert, partner at QVR Advisors, about the evolution of this world, why you should not get your trading advice from Instagram, and how this trend has reshaped the entire market.

Odd Lots is coming to Washington, DC! Get your tickets here.

See omnystudio.com/listener for privacy information.

Transcript

Click on a timestamp to play from that location

0:00.0	Old trading walks into a bar. New trading raises it. Unlike some guys, Tasty Trade puts traders first.
0:08.7	Maybe you're the type to hunker down on your desktop for hours. Maybe you breeze by on your browser,
0:13.4	or maybe you just need that top-rated app right by your side. However you do it, TastyTrades got the
0:18.8	advanced tools you need to tackle stocks, options, futures, and more.
0:22.7	All in one place.
0:23.9	Chart your heart out with over 300 indicators.
0:26.6	See opportunity differently with interactive curve analysis.
0:29.9	Use backtesting to learn from the past and plan for the future.
0:33.2	The platform is only the beginning of better trading.
0:35.5	You'll also find low pricing, lots of education, and backup from a support team that really gets how traders trade.
0:42.0	It's no wonder, Investopedia named TastyTrade the best broker for options in 2024.
0:47.5	Genius loves company.
0:49.2	So get moving at Tastytrade.com slash ride with us.
0:53.7	Tasty Trade Inc. is a registered broker-dealer and member of FINRA,
0:56.9	NFA, and SIPC. Donald Trump has already changed the way we think about the U.S. economy.
1:02.6	Now he's back in the White House, and Bloomberg's Trumponomics podcast is here to help.
1:08.2	I'm Stephanie Flanders, head of government and economics at Bloomberg.
1:11.9	Whatever the big question of the week is, we'll have something interesting to tell you about it
1:16.0	in a lively conversation with the reporters and analysts closest to the action.
1:20.7	Listen to new episodes every Wednesday and follow Trumponomics on Apple Podcasts, Spotify,
1:25.8	or wherever you listen.
1:28.0	Hey there, Oddlots listeners, It's Tracy Alloway. And Joe Wisento.
	...

Transcript will be available on the free plan in -43 days. Upgrade to see the full transcript now.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from Bloomberg, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Bloomberg and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.