5 Takeaways from Grant Cardone’s Conversation with Jon & Pete Najarian

5 Takeaways from Grant Cardone’s Conversation with Jon & Pete Najarian

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Market Rebellion Co-Founders Jon Najarian and Pete Najarian recently sat down with prolific real-estate investor, author, and motivational speaker Grant Cardone to talk about trading, the mindset one has to have if they want to be successful, and to share stories from their legendary careers. During the conversation, the Najarians gave a birds eye view into their lives, including an honest conversation where they revealed their biggest winning days and losing days, as well as the shocking unusual options activity they’ve seen in their long careers as professional option traders. We’re going to cover it all below, but if you want to cut to the chase, click here to watch the full conversation now.

What Do Jon Najarian, Pete Najarian, and Grant Cardone Have in Common?

To kick off the podcast, Grant Cardone told the Najarian brothers that he asked an AI chatbot what the three had in common. Here’s what the AI chat said:

“Jon and Pete are known for their expertise in options trading, and appearances on financial television, as well as for founding the market intelligence company Trade Monster, and the Najarian Family Office.”

“Grant Cardone is a sales trainer, motivational speaker, real estate investor and author.”

“Here’s what Jon Pete and Grant have in common: Finance & investment, entrepreneurship, media presence, education & mentorship, authorship, public speaking, and wealth management.”

After reading Jon and Pete the AI chatbot’s take, Grant asked the brothers, “How accurate was ChatGPT?”

Jon Najarian: “Pretty damn accurate.”

Pete Najarian: “I’d put it about 100%.”

There’s a lot that we can learn from these three highly successful individuals, all of whom came from humble beginnings, and rose to the top of their industries — and we’re going to cover everything they talked about. But first, let’s start out with something for the fans:

Why Does Jon Najarian say, “BANG!”?

There’s a lot of gold in this conversation, but for the true Market Rebels out there, let’s clear up something many have wondered for a long time.

The story behind Jon Najarian’s “BANG!”

Jon Najarian: “Bang” came from when you’d make money trading in the pit. You’re in a pit with 50 or 70 people who hate your guts, because you just came into the pit. You’re gonna take money, or ‘food’ off their table. So you have to fight.

Grant Cardone: Is that really true though? If me and him do a deal, it took a deal from you?

Jon Najarian: Oh yeah. Because the way it worked was, the broker would come into the pit, and he or she would say, “I want to buy in 10X trading!” and they’d say, “Give me a market!” And we’d both bark out, you know, “Half three quarters!” and he’d say, “Buy ‘em!” and you’d say “Sold!” and whoever said sold first, gets the trade. 

Grant Cardone: And when you’d get it, you’d be like, “Bang!” 

Jon Najarian: Yeah you’d just, “Bang!” and that pisses them off. And it works on them mentally, because the more you tell them you’re winning, the more they think, “Well I must be losing if he’s winning!”

Jon went on to explain that it’s also a great way to cheer yourself on when you make an incredible trade — and when you’re in the pit making 1,000 trades per day, there’s often a lot to be excited about.

Now, let’s get into the juicy stuff.

What’s the Most Money Pete Najarian Has Made in a Single Day?

Most traders (and for that matter, most people) would be too afraid to share this information, however, Jon and Pete are straight shooters. So when Grant Cardone asked them, “Have you ever had a $200,000 dollar day?” The brothers opened up about some of their biggest wins.

Grant Cardone: Have you guys ever had a $200,000 dollar day?

Jon Najarian and Pete Najarian in unison: Oh yeah. Pete added, “Positive and negative!” With a chuckle.

Grant Cardone: What’s your biggest day, ever? Biggest single trading day?

Pete Najarian: Biggest winning day, seven figures, for sure. 

Grant Cardone: How many seven figures? There’s a lot of seven figures. 9 million dollars?

Pete Najarian: Yeah, something like that.

Jon Najarian: Grant, when was in the AOL pit, he would routinely carry $100 million dollars worth of stock. Every. Freakin’. Day. 

Grant Cardone: What does it mean to carry $100 million dollars worth of stock?

Pete Najarian: That’s how much stock I’ve ‘got.’ It’s what I own. And it’s against other positions that I’ve got on in the options world. So a lot of it is hedging, and some of it is just leaning a certain way. 

What’s the Worst Day Pete Najarian Has Ever Had in Trading?

Even more bold than sharing your biggest winning day is sharing your biggest losing day. As traders, we all have them, and just like the wins, there is always something important to learn. When Grant asked Pete, “What about the worst day you’ve ever had?” Pete didn’t hold back: It was a rough story.

Pete Najarian: Oh that’s a really good question. That was seven figures. In that particular case, it was a couple million bucks. And it literally happened in 10 minutes. That’s the pain side of trading.

Grant Cardone: What time of day did it happen?

Pete Najarian: Oh it was probably like 11 o’clock in the morning Chicago time at the time. 

Grant Cardone: You remember where you were? 

Pete Najarian: Oh yeah, I remember the whole trade. I remember everything. I can’t tell you some of the details of the trade, just to protect myself because I said things to the person on the other side of the trade that I’d probably not want out there. But you know, he ripped me off. He stole money from me. This guy literally was a trader from New York, who knew what was going on in the market, he had “insider information,” and stole a million plus dollars from me. 

Grant Cardone: He set you up — he knew you were going to lose a couple million dollars.

Pete Najarian: Absolutely knew. Because he had control over it, he had control over the whole trade, I couldn’t sell it. There’s something that they used to call an uptick, when we were trading, you had to have an “uptick” on the stock. This guy had control over whether or not there was an uptick, and I couldn’t sell it because there wasn’t an uptick in the stock, it just kept dropping. And I needed to sell millions of dollars worth of shares against this trade, and I just watched it go down, down, down. I needed to hedge the trade that I had done, and he was in control of the other side of the hedge.

Yikes. This story really hits at the core of what Market Rebellion is all about. There are people in the market who are, simply put, bad actors. They lurk under the surface, their moves are immoral and sometimes even illegal, and for a few reasons we’ll get into below, these actions aren’t always punished as consistently as they should be. The only thing we can do to take back the power as individual traders is to fight fire with fire — with unusual options activity. 

What’s One of the Most Unusual Options Trades Pete Najarian has Ever Seen?

At the crux of Pete and Jon Najarian’s trading style is unusual options activity. For the uninitiated, unusual options activity is when someone with a lot of money (often an institution, hedge fund, or even on occasion an inside trader) takes an extremely peculiar trade. Often, these trades will be worth millions of dollars, with high volume against low open interest, and far out of the money. When we at Market Rebellion see trades like this we pay close attention, because often these trades foreshadow a massive piece of news. Simply put, it’s unlikely that someone would risk a colossal amount of capital on a highly-unlikely trade if they didn’t have at least a very good idea of what was going to happen next. That’s why, after talking about some of the shady stock market dealings of those in power, Grant Cardone asked Pete and Jon Najarian, “What’s one of the wildest unusual options activity trades you’ve ever seen?”

Pete Najarian: I got a good one for you. I had just started at CNBC doing a show, and we were a couple of months into it, and they were asking me some questions, and I said, “Well I’m seeing some really unbelievable unusual options activity, and I’m not sure if we even want to talk about this.” And they said, “Yeah we want to talk about it.” I said, “Alright” Somebody was looking out and buying some puts in Bear Stearns. This was in 2007. 

Grant Cardone: Oh my god.

Pete Najarian: So, Bear Stearns was trading about $67-bucks a share. The CEO absolutely confirms ‘everything is fine, there’s no big deals out there, everything is just hunky-dory. It’s all good.’ Well, I’m seeing all these puts being bought, but they’re not buying something that makes any sense at all, Grant. Because the reality is, you wouldn’t go way out of the money. In other words, stock is trading at $67, they’re buying the $30 puts. Doesn’t make any sense because look how far it has to drop before these actually kick in. But they bought maybe 35,000 of them for about $0.30. And I said, ‘god, this is a head scratcher, because this is kind of scary to me. I don’t know what the hell these guys are thinking, but they think something really bad is going to happen.’

Grant Cardone: Typically you would buy one with a $1 or $2 dollar variation, right? Not $30 dollars.

Jon Najarian: You might buy something at the money. So if it’s at $67, maybe you’re buying the $65 puts. 

Grant Cardone: Yeah I mean this is like making a bet on black-7 (referencing roulette).

Jon Najarian: It’s like armageddon. The end of the world kind of thing.

Pete Najarian: And this is kind of the kick off of the financial crisis. Everyone always goes back and they go well, ‘it all kicked off with the Lehman Brothers.’ Which was September-October or whatever. This was way back in March. I remember like it was yesterday. They bought March $30 puts, they paid $0.30 cents, and within days, this stock is now trading all the way down to like $5 bucks. And then it goes all the way, before Jamie Dimon took over, it went down to almost $0. 

Grant Cardone: How much money do you think those puts were worth?

Pete Najarian: Well they went from $0.30 cents to almost $30 dollars.

Grant Cardone: So you’re talking 100X.

Pete Najarian: Yes, this was real.

Grant Cardone: Hundreds of millions of dollars. 

Jon Najarian: They did the same thing in General Motors, they bought way out of the money puts, because they knew General Motors was underwater — they were overleveraged.

Grant Cardone: So now, when you look today, where do the everyday people go to look for unusual activity? 

Pete Najarian: Our site.

Jon Najarian: Us. Market Rebellion.

Watch the video in full for the entire conversation between these successful industry leaders below.

There’s a lot more that these guys got into. Like whether Warren Buffett, Dave Ramsey, and Charlie Munger were wrong about Bitcoin. How Nancy Pelosi really made her money. The type of fearless mindset that successful traders, and more aptly, successful people have to embody in order to carry out their goals. And much, much more. Watch the video for free below.

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