Jon Najarian Options Trading: Strategy Guide 2026

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1. Who Is Jon Najarian? — From NFL to Options Trading

Jon Najarian is a co-founder of Market Rebellion, a CNBC contributor, and a veteran options trader with over 40 years of experience. He started his career on the Chicago trading floor in 1981 after a brief stint with the Chicago Bears. Today, he is one of the most respected voices in options trading, known for his expertise in identifying unusual options activity and his ability to translate complex market dynamics into actionable insights.

Jon’s journey from professional football to professional trading is a story of resilience, discipline, and continuous learning. His unique background — combining the discipline of an athlete with the analytical rigour of a trader — has given him a perspective that resonates with traders of all levels.

From Chicago Bears to the Trading Floor

Jon Najarian’s path to trading was unconventional. After playing football at the University of South Florida on a scholarship, he was drafted by the Chicago Bears. However, his football career was cut short by injury, leading him to the trading floor in 1981. He joined the Chicago Board Options Exchange (CBOE), where he spent the next several years learning the intricacies of options trading from the ground up.

40+ Years of Trading Experience

With over four decades of experience, Jon Najarian has witnessed and survived multiple market cycles. He has managed money for Goldman Sachs and other institutional clients, developed proprietary trading algorithms, and co-founded successful trading platforms. His longevity in the industry is a testament to his disciplined approach and ability to adapt to changing market conditions.

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2. Jon Najarian’s Options Trading Journey

Jon Najarian’s journey into options trading was not love at first sight. It was a struggle that nearly led him to quit — but persistence paid off.

How He Got Started in Options (1981)

After his football career ended, Jon joined the Chicago trading floor. He was introduced to options trading by a friend who worked on the floor. At first, he found the concept of options completely baffling. He spent three months on the trading floor before the “click” happened — the moment when he finally understood how options worked and began to see the possibilities they offered.

The Learning Curve — Why He Almost Quit

Jon has been open about the steep learning curve he faced. For three months, he felt lost and overwhelmed. The complexity of options trading — the jargon, the math, the risk — was intimidating. But he persisted, and once the concept clicked, he never looked back. His advice to beginners: “It takes time. Don’t give up.”

Managing Money for Goldman Sachs and Beyond

Jon’s success on the trading floor led to opportunities with major institutions. He managed money for Goldman Sachs and other clients, honing his skills in risk management and portfolio construction. This experience gave him a front-row seat to how institutional traders approach the markets — a perspective that would later inform his own trading strategies.

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3. Jon Najarian’s Trading Strategy — His Edge in Options

Jon Najarian’s trading edge comes from a combination of technology, experience, and a deep understanding of market microstructure.

The Algorithm That Finds Unusual Options Activity

Jon uses a proprietary algorithm that scans millions of trades per minute to identify large block options trades. This algorithm looks for “unusual options activity” — trades that are significantly larger than average, often indicating institutional interest. By identifying these trades early, Jon and his team at Market Rebellion can get a sense of where the “smart money” is flowing.

Why Volume Alone Isn’t Enough

Jon emphasises that volume alone is not enough to make a trading decision. “You could see volume, but you wouldn’t know if it was bought or sold,” he explains. “It’s really important to know the difference.” His algorithm not only identifies large trades but also determines whether the options were bought (bullish) or sold (bearish). This distinction is critical for understanding market sentiment.

The Importance of Knowing If Options Are Bought or Sold

Knowing whether an option was bought or sold provides crucial context. A large buy of call options suggests bullish sentiment, while a large sell of call options suggests bearish sentiment or profit-taking. This information helps Jon and his followers make more informed trading decisions.

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4. The Upsides of Options Trading — Jon Najarian’s View

Jon Najarian is a strong advocate for options trading, highlighting two primary advantages: defined risk and leverage.

Defined Risk — You Can Only Lose What You Put In

“If I buy an option for $1, that’s all I can lose,” Jon explains. Unlike stocks, where a position can theoretically go to zero (or even below zero in the case of margin), options offer defined risk. The maximum loss on a long option position is limited to the premium paid. This makes options an attractive tool for traders who want to limit their downside exposure.

Leverage — Controlling More with Less

“For 5% or 10% of the cost of owning the stock, you can control the stock with options,” Jon points out. This leverage allows traders to amplify their returns without committing large amounts of capital. However, Jon is quick to warn that leverage cuts both ways — it can magnify losses just as it can magnify gains.

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5. Jon Najarian’s Worst Trade — Learning from Losses

Jon Najarian is refreshingly honest about his biggest trading mistake. His worst trade, he says, occurred on his 29th birthday — a day he will never forget.

The Birthday Trade That Lost Millions

On his 29th birthday, Jon was in a trade on a medical device company. The company reported good earnings, and everything looked positive. But then, the company issued poor guidance — and the stock dropped 30% in a single day. The trade cost him millions of dollars.

The Lesson — Don’t Let Someone Make You Long or Short

Jon’s key takeaway from this experience: “It was the worst and the best thing because it made us focus on why we lost the money.” He learned a crucial lesson: never let someone else influence your position. “Don’t let somebody make you long or short,” he says. “It’s your money. You have to be responsible for your own decisions.”

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6. Do Athletes Make Good Traders? — Jon’s Perspective

Jon Najarian believes that athletes have a natural advantage when it comes to trading.

“I think athletes can make good traders because they have discipline,” he explains. “They know how to train, how to prepare, and how to perform under pressure.” However, he also notes that there is a key difference: “Traders need discipline both to take losses and to take profits. Some people can do one but not the other.”

Jon’s own experience as a former athlete gave him the discipline needed to succeed in trading. He applied the same work ethic to learning options that he had to football — and it paid off.

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7. Jon Najarian on Market Rebellion and the Future of Trading

In 2018, Jon and his brother Pete Najarian rebranded their company from Investitute to Market Rebellion, reflecting a new focus on empowering retail traders.

From Investitute to Market Rebellion — The Rebrand

The rebranding was a strategic move to better serve the growing community of retail traders. Market Rebellion offers a range of services, including moderated trading rooms, technical analysis, futures trading, and cryptocurrency trading content. The platform is designed to help traders make better-informed decisions and take control of their financial futures.

What Market Rebellion Offers Traders

Market Rebellion provides traders with tools and insights that were previously only available to institutional traders. From real-time alerts on unusual options activity to educational content and community support, the platform aims to level the playing field.

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8. Jon Najarian’s View on Market Opportunities (2026 Update)

While Jon’s original interview focused on 2019 market conditions, his principles for identifying opportunities remain highly relevant. Here is an updated look at the sectors he was watching and how they have evolved.

Cannabis Stocks (Historical Perspective): In 2019, Jon compared cannabis stocks to cryptocurrency, noting their volatility and potential for recovery. Since then, the cannabis sector has undergone significant consolidation, with a focus on earnings, regulatory changes, and international expansion. Traders continue to watch for opportunities in companies with strong fundamentals.

Retail and Payment Processors: Jon highlighted retailers like Target and Kohl’s as “good speculation into Black Friday,” and payment processors like Mastercard and Visa as long-term beneficiaries of consumer spending. Today, the retail sector has been transformed by e-commerce and omnichannel strategies, while digital payments continue to grow, driven by fintech innovation and the shift away from cash.

Cryptocurrency: Jon noted the 2017 boom and 2018 crash of cryptocurrencies. Since then, the crypto market has matured significantly, with institutional adoption, regulatory clarity, and the introduction of ETFs. While still volatile, cryptocurrencies are now a more established asset class.

What Jon Is Watching Today (2026): Based on his core principles, Jon would likely be watching for unusual options activity in sectors experiencing rapid change — such as AI-driven tech, renewable energy, and fintech — and using his algorithm to identify where institutional money is flowing.

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9. How to Get Started in Options Trading — Lessons from Jon Najarian

Jon Najarian has distilled his 40+ years of experience into practical advice for beginner options traders.

Start Small and Define Your Risk

Jon’s number one piece of advice: “If you buy an option for $1, that’s all you can lose.” Start with small positions and never risk more than you can afford to lose. Options are powerful tools, but they must be used with discipline.

Learn the Basics Before Using Leverage

Leverage is a double-edged sword. Before using leverage, make sure you understand the basics of options trading — what calls and puts are, how premiums work, and how options are priced. Jon advises beginners to learn the fundamentals before taking on higher-risk strategies.

Develop Discipline — Cut Losses, Take Profits

Discipline is the most important trait for a trader. Jon emphasises the need to cut losses quickly and take profits when they are available. “Traders need discipline both to take losses and to take profits,” he says. “Some people can do one but not the other.”

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10. Jon Najarian — Complete Interview Transcript

Q: How did you get started in options trading?

Jon Najarian: I started in 1981. I was in the Chicago Bears camp, but I ended up on the trading floor. A friend of mine got me started on the floor, and I thought it was the most confusing thing I’d ever seen. It took me three months to finally have that click moment.

Q: What do you think are the upsides to trading options?

Jon Najarian: If I buy an option for $1, that’s all I can lose. And then the leverage — for 5% or 10% of the cost of owning the stock, you can control the stock with options.

Q: Why aren’t more people trading options in their investment accounts?

Jon Najarian: A lot of people are intimidated by it, and they don’t understand it. It’s also much easier to trade stocks. But once you understand the power of options, you realise it’s not that difficult.

Q: How are you using your algorithm to find opportunities?

Jon Najarian: We use an algorithm that finds where the big blocks of options are trading. You could see volume, but you wouldn’t know if it was bought or sold. It’s really important to know the difference. If someone buys a call, that’s bullish. If someone sells a call, that’s bearish or profit-taking.

Q: What is your best advice for someone who is just getting started?

Jon Najarian: Start small. Define your risk. Learn the basics before using leverage. And develop discipline — both to take losses and to take profits.

Q: Tell us about your worst trade ever.

Jon Najarian: It was on my 29th birthday. We had a position in a medical device company. They had good earnings, but the guidance was poor, and the stock went down 30%. It was a very expensive lesson. It made us focus on why we lost the money, and it was the best thing that ever happened to us because we changed our approach.

Q: Do athletes make good traders?

Jon Najarian: I think athletes can make good traders because they have discipline. They know how to prepare and how to perform under pressure. But traders need discipline both to take losses and to take profits — some people can do one but not the other.

Q: What is your view on cannabis stocks, retail, and payment processors?

Jon Najarian: We’ve been watching cannabis stocks. They’ve been trading like cryptocurrency — they had a big boom, then they crashed. They are down 60-70% and we think they will do well. In retail, we like Target and Kohl’s going into Black Friday. And payment processors like Mastercard and Visa will continue to do well as Americans have more money to spend.

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11. Jon Najarian Reference Table

📌 Jon Najarian has been a prominent figure in options trading for over four decades, combining institutional experience with a passion for educating retail traders.

📌 These principles have guided Jon Najarian’s trading for over 40 years and continue to be relevant for traders of all experience levels.

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12. Frequently Asked Questions

Who is Jon Najarian?

Jon Najarian is a co-founder of Market Rebellion, a CNBC contributor, and a veteran options trader with over 40 years of experience. He started his career on the Chicago trading floor in 1981 after a brief stint with the Chicago Bears.

How did Jon Najarian get started in options trading?

Jon Najarian started trading options in 1981 after his football career with the Chicago Bears ended. He joined the Chicago trading floor and spent three months struggling to understand options before it finally clicked.

What is Jon Najarian’s trading strategy?

Jon Najarian uses an algorithm that scans millions of trades per minute to identify large block options trades. He focuses on unusual options activity, paying close attention to whether options are bought or sold.

What is Market Rebellion?

Market Rebellion is an options trading platform co-founded by Jon Najarian. It was formerly known as Investitute and offers moderated trading rooms, technical analysis, futures, and crypto trading content.

What was Jon Najarian’s worst trade?

Jon Najarian’s worst trade occurred on his 29th birthday when a trader lost millions of dollars of his money on a medical device company. The company reported good earnings but poor guidance, causing the stock to drop 30%.

Does Jon Najarian think athletes make good traders?

Yes, Jon Najarian believes athletes can make good traders because they have discipline. However, he notes that traders need discipline both to take losses and to take profits — some people can do one but not the other.

What is Jon Najarian’s edge in options trading?

Jon Najarian’s edge comes from an algorithm that identifies large block options trades and determines whether they were bought or sold. This helps him understand institutional sentiment and market direction.

What are the upsides of options trading according to Jon Najarian?

Jon Najarian highlights two main upsides: 1) Defined risk — you can only lose what you put in, and 2) Leverage — you can control a stock position with 5-10% of the cost of owning the stock outright.

What is Jon Najarian’s advice for beginner options traders?

Jon Najarian advises beginners to start small, define their risk, learn the basics before using leverage, and develop discipline — both to cut losses and to take profits.

What is Jon Najarian’s net worth?

While Jon Najarian’s exact net worth is not publicly disclosed, he is a successful options trader who has managed money for Goldman Sachs and other institutional clients, and co-founded Market Rebellion.

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