Tom Sosnoff: The World’s Foremost Stock Options Expert - The Michael Sartain Podcast

Tom Sosnoff (IG: @TheTomSosnoff) is the creator of the Think Or Swim platform which he sold to TD Ameritrade for $750 million, the TastyWorks online brokerage which he sold to IG Group for $1.1 billion and the Small Exchange which he sold for $250 million. He’s also the creator of the TastyTrade Financial Network, the largest online financial network in the world. Tom is the foremost expert in the world on retail options trading.

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Filmed at Sticky Paws Studios: https://m.youtube.com/channel/UComrBVcqGLDs3Ue-yWAft8w

0:00 Intro 0:55 Stories from being a pit trader 5:09 The creation of Think or Swim 8:31 Russian programmers 12:16 Courtside seats to see Michael Jordan as a rookie 14:55 Gambling with Michael Jordan 16:44 Playing poker with Michael Jordan 17:46 Playing 4 on 2 against Michael Jordan 21:23 Someone tries to buy your Bulls tickets 22:53 Midprice and the bid/ask spread 24:02 *Pissing off other companies 24:38 Weekly options and implied volatility 25:53 *Selling Think Or Swim to TD Ameritrade for $750 million 29:02 Tom becomes an executive at TD Ameritrade 30:55 Creating TastyTrade in 2013 32:14 Back testing and look back 33:00 Trading stock options versus flying an airplane 33:12 *Creating the TastyWorks brokerage 36:38 Tasty Works has no financial media 37:09 Dylan Ratigan 37:44 *No commissions on stock trades 39:11 Creating the small exchange And selling it for $250 million 41:17 Selling TastyWorks for $1.1 billion 42:06 *Traditional financial media tries to ignore Tom Sosnoff 45:52 The first brokerage in the world to offer every product to every person 46:24 Tom is the largest shareholder of IG group 47:28 TastyTrade methodology 48:54 We believe everyone is smart 50:45 Traditional finance and DeFi 52:30 Web 3.0 53:52 Liquid options on cryptocurrency 55:31 Anonymity versus regulation 56:46 Crypto firms realize they need Regulatory approval 57:50 Liquid options would remove some extreme volatility 59:20 The myths about high-frequency trading 1:00:03 Karen the super Trader 1:01:44 No one knows anything 1:02:25 No such thing as a Crypto hedge fund 1:02:50 Technical analysis scientifically does not work 1:04:24 Even if you know the earning numbers you still don’t make money 1:05:10 What is the point of economists? 1:07:02 Fundamental analysis 1:08:10 Artificial intelligence 1:09:09 Normal distribution, standard deviation, High probability move 1:13:19 Volatility is mean Reverting 1:17:25 Efficient two-sided Markets 1:19:59 Buying options versus selling options 1:21:23 Research pieces on Tasty Trade 1:22:40 Mathematicians and physicist in finance 1:24:13 You are the average of the five people you surround yourself with 1:27:36 Your financial advisor doesn’t know anything 1:28:30 Making a trade versus navigating an airplane 1:29:19 *Why do you hold a short position? 1:30:38 Financial lingo 1:32:09 Jordan: “someday I’m going to make as much money as you motherfuckers” 1:32:52 Dylan Ratigan and financial media 1:36:55 75 trades today 1:38:04 Elon Musk, Mark Zuckerberg, Jack Dorsey and insider trading. 1:39:45 Joe Rogan 1:41:57 Mark Zuckerberg and the meta-verse 1:43:06 Blockchain, NFT’s and virtual land 1:45:23 Never asked Michael Jordan for an autograph 1:46:43 Social media as a public utility 1:49:13 Fang stocks and the concentration of wealth 1:51:44 Traders who believe the market only goes up 1:54:10 The risk I’m willing to take 1:56:44 Meme Stocks: GME, AMC 1:58:25 Robinhood 2:00:03 Citadel controversy 2:01:29 Liquidity provider, market maker 2:03:44 Going back to work, working from home 2:07:59 Inflation 2:08:15 *The Last Dance and Scottie Pippin 2:13:09 Outro