tastytrade documentaries offer an in-depth view of the world of trading and entrepreneurship. Weaving together the personal with the historical, tastytrade’s documentary filmmakers dive into topics that are relevant to options traders, yet also appealing to someone new to the industry.
Cancel Crash, a documentary produced by tastytrade, aggregates the memories of the those trading during the Crash of 1987 and explores the aftermath of the unexpectedly quick recovery that saved and strengthened modern options and futures trading.
With low taxes and inflation, Reaganomics contributed to a consistently bullish marketplace, which best parallels the financial vibe of the 1980s. But as Sir Isaac Newton would say, “Whatever goes up, must come down.”
On October 19, 1987, the Dow Jones dropped a record setting 508.32 points in a single day. Otherwise known as Black Monday, this day catapulted the financial world into chaos and uncertainty.
In free fall, major market indices closed for trading.
The market's quick recovery would never be able to occur in today’s marketplace, but at the same time, neither would the Crash of 1987. In today’s markets, technology has dramatically increased the size and rate of trading, which provides greater market liquidity than in years past. The wide markets and illiquidity that define the 1987 marketplace do not exist today to their previous extent.
In addition, traders better understand fear and uncertainty due to the post 1987 introduction of volatility skew. At tastytrade, we understand risk in the marketplace and teach the average retail investor how to take advantage of it.
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