Options Update: How to Play Tiffany

Options Update: How to Play Tiffany

Assessment

Interactive Video

Business

University

Hard

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The video discusses current market trends, focusing on the general upward trend despite thin markets and low volume. It highlights upcoming economic data releases, such as home sales numbers and GDP estimates. The VIX is analyzed, with expectations of a slow decline but remaining within a tight range due to ongoing news. Intel's stock performance is examined, noting its highest point in 13 years, boosted by positive revenue outlook and dividend increase, leading to bullish options activity. A trade strategy for Tiffany is outlined, leveraging expected gains from upcoming earnings, with a focus on stock options and potential upside.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the expected behavior of the VIX index according to the discussion?

It will remain stable around 13 to 14.

It will drop below 13.

It will likely increase significantly.

It will fluctuate wildly.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What recent achievement did Intel's stock reach?

Its highest price in 5 years.

Its highest price in 10 years.

Its highest price in 13 years.

Its highest price in 15 years.

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was a key factor in the bullish options activity for Intel?

A decrease in expenses and a dividend increase.

A stock split.

A merger announcement.

A new product launch.

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the main strategy discussed for trading Tiffany's stock?

Buying shares directly.

Selling call options.

Using a combination of selling puts and buying calls.

Short selling the stock.

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why is the discussed strategy for Tiffany considered leveraged?

It involves borrowing money.

It minimizes risk completely.

It allows for unlimited upside potential.

It requires a large initial investment.