Moomoo Technologies VP Justin Zacks interviewed by Bloomberg TV on collaboration with CBOE and index option launch
On Nov.15, 2023, Moomoo Technologies Inc. Vice President Justin Zacks appeared on Bloomberg TV’s “The Close” program to talk about its collaboration with CBOE Global Markets and the index option product launch. The interview hosted by Bloomberg’s Romaine Bostick and Scarlet Fu focused on the option trading trends, moomoo’s product offerings, new fee structure and educational resources on its platform. Here is an excerpt for the six-minute interview:
What been the demand for options, particularly index options from retail investors?
The demand this year for options from retail investors is at record highs and continues to grow. The number of users using options on the moomoo platform has doubled this year. A lot people were introduced to options during the pandemic and continue to be interested.
Index options in specific offer certain advantages over equity options and many traders are beginning to add them to their trading arsenal. Index options are cash settled and are European style as well, so you don’t have to worry about being assigned the underlying. They also can be subject to preferential tax treatment.
Who is the retail trader who’s trading options and how do they differ from the people who were trading meme stocks during the pandemic?
Not everybody is super young, brand new to investing and trading out of their mom’s basement. Many of our traders are older, experienced and have been trading awhile.
Is everybody just buying calls and puts?
Some option traders are, but many are using other types of strategies. We want our users to make money and we want to make sure they are educated. Options are complex and risky products, and we really need to train them. That includes educational videos and paper trading.
What is investor sentiment overall at this point?
Based on quarterly surveys sent out to some of our users, they are generally worried about inflation and the economy, but many of them continue to invest and to trade as they see it as a way to potential financial freedom.
Please watch the show here.
Options trading is risky and not appropriate for everyone. Read the Options Disclosure Document (j.us.moomoo.com/00xBBz) before trading.
Under section 1256 of the Tax Code, profit and loss on transactions in certain exchange-traded options and futures are entitled to be taxed at a rate equal to 60% long-term and 40% short-term capital gain or loss, provided that the market participants involved and the strategy employed satisfy the criteria of the Tax Code. Moomoo Financial and its affiliates do not provide tax advice. Consult a tax professional regarding your specific tax situation. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request. Moomoo does not guarantee favorable investment outcomes. The past performance of a security or financial product does not guarantee future results or returns. Customers should consider their investment objectives and risks carefully before investing in options. This material is for informational and educational use only and is not a recommendation or endorsement of any particular investment or financial strategy. Information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information having regard to your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo is a financial information and trading app offered by Moomoo Technologies Inc. (MTI). In the U.S., investment products and services on Moomoo are offered by Moomoo Financial Inc. (MFI), Member FINRA/SIPC.
