CNBC’s Mike Khouw on Options Trading, YieldMax ETFs & Market Psychology | Traders and Haters
Summary
Mike Co joins Traders and Haters to discuss market psychology, contrasting retail "tilt" with institutional risk management. He analyzes Nvidia’s valuation, the dangers of leverage, and his costly natural gas trade against John Arnold. Co also reflects on his Wall Street career, comparing poker strategies to trading and explaining why professional firms prioritize process over emotion.
Topics discussed
Intro: Mike Co joins the show and discusses retail trading terms like 'tilt'
Managing billions: Mitigating emotions and the investment process
NVIDIA options strategy and the danger of going all cash
Semiconductor capex, AI hype, and hyperscaler spending
Quant traders, LTCM, and the myth of mathematical edge
Market crashes: Dot-com bubble vs. GFC and policy responses
Liquidity, carry trades, and the impact of low interest rates
Current market rally, NVIDIA valuation, and Micron's multiples
Commodity cycles, high prices, and ASML's monopoly
Casino math: Blackjack, poker, and prop trading origins
The UNL trade: A massive loss and lessons on position limits
Trading errors: Getting fired vs. arrested for illegal acts
Floor trading culture, honor, and the reality of spoofing
CNBC appearances, social media signals, and True Social
Managing unforeseen news events and NVIDIA fund performance
Advice for 2026: Avoid cash drag and seek asymmetric setups
The danger of 'sure things' and final thoughts on trading edge
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