Options Update: How to Play Facebook

The video discusses market volatility, focusing on the VIX index and its implications for the market. It analyzes Baidu's stock performance and the heavy options activity surrounding it. The video also covers earnings reports for GoPro and LinkedIn, noting mixed options activity. Finally, a trade strategy for Facebook is presented, involving a bull diagonal spread to capitalize on expected volatility and stock movement.

What does the VIX index indicate about market volatility?

• It shows the current stock prices.

• It measures the demand for insurance.

• It predicts future interest rates.

• It indicates the unemployment rate.

What was notable about Baidu's recent performance?

• It launched a new product line.

• It announced a merger with a major competitor.

• It reported a significant drop in sales.

• It reached a record high despite a mixed sales forecast.

Which category do GoPro and LinkedIn fall into according to the transcript?

• Dividend-paying stocks

• Undervalued stocks

• Emerging market stocks

• Loved stocks

What is the expected pattern for Facebook's stock according to the trading strategy discussed?

• Constant growth without fluctuations

• A rally followed by a drop and another rally

• A sudden crash

• A steady decline

What is a bull diagonal spread in trading?

• A way to hedge against currency fluctuations

• A method of short selling stocks

• A strategy involving buying and selling calls with different strike prices and expiration dates

• A technique for predicting market crashes