Paul Tudor Jones Says 2027 Gets Rough, and It's Not About Valuations

Paul Tudor Jones, the legend who shorted the 1987 crash, says 2027 could be really challenging, and his reasoning isn't valuations, it's supply. For years, companies bought back stock faster than Wall Street could print it: fewer shares, same money, prices up. He thinks that flips next year as buybacks slow and CapEx surges. The catch: the math still favors buyers, Goldman sees about 1.4 trillion in buybacks versus 700 billion in new supply, roughly 2 to 1. Mike Butler runs the options on it. 📊 tastylive: https://www.tastylive.com/ 📰 Get Tom's pre-market analysis every morning: https://www.tastylive.com/newsletters 📘 FREE Options Strategy Guide: https://tinyurl.com/bp9ms763 📱 Follow tastylive on X: https://x.com/tastyliveshow Chapters 00:00 The 2027 warning 00:30 It's supply, not valuations 00:55 The plumbing of the market 01:15 Why it might flip next year 01:40 But buybacks still win 2 to 1 02:30 Asking the options about 2027 03:00 The expected move to December 2027 03:40 Scaling vol by the square root of time 04:50 A 23% move in either direction 06:30 The put skew and open interest #tastylive #mathcheck #paultudorjones #buybacks #capex #optionsmath #spx #2027 #optionstrading #stockmarket tastylive is a real financial network, producing hours of live programming every day. Follow along as our experts navigate the markets, provide actionable trading insights, and teach you how to trade. With over 120 original segments, and over 25 personalities, we'll help you take your trading to the next level, whether you are new to trading or a seasoned veteran. tastylive content is created, produced, and provided solely by tastylive, Inc. ("tastylive") and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read all applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange Traded Options Risk Disclosure Statement found at https://tastytrade.com/disclosures/. Past performance is not indicative of future results. Performance is not presented net of all commissions, fees, and expenses. Multi-leg option strategies incur higher transaction costs than single leg trades as they involve multiple commission charges. Examples provided are for illustrative, informational, and educational purposes only and are not intended to be reflective of results you can expect to achieve. Supporting documentation for any claims, including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer.