Options Insight: How to Play Allergan

The video discusses the current earnings season, highlighting market volatility and concerns such as cost-cutting measures and poor guidance. It explores the impact of potential interest rate hikes on the bond market, with a focus on the Fed's actions. The video also presents an investment strategy for Allergan stock, emphasizing its potential amidst healthcare sector uncertainties. Finally, it identifies opportunities in the healthcare sector, suggesting a risk reversal strategy for stocks like Johnson & Johnson.

What were some of the concerns during the 2014 and 2015 earnings cycles?

• Cryptocurrency regulations

• Oil prices and Middle East tensions

• Brexit and US elections

• Ebola and Europe

Why is the finance ministry of Norway recommending an increase in stock allocation?

• Due to concerns about fixed income

• To diversify their portfolio

• To reduce exposure to emerging markets

• To capitalize on low interest rates

What is the probability of an interest rate hike in December according to the discussion?

• 50%

• 85%

• 62%

• 75%

What is the suggested strategy for dealing with Allergan stock amidst market uncertainties?

• Short selling the stock

• Holding the stock long-term

• Buying call options

• Investing in bonds

What financial resources does Allergan have to support its strategies?

• $50 billion

• $40.5 billion

• $30 billion

• $20 billion