Options Update: Trading Monsanto Ahead of Earnings

The video discusses market trends, focusing on the volatility seen in the S&P 500 and the VIX. It highlights Bed Bath & Beyond's stock performance, noting its recent upgrade and potential for growth due to lower commodity prices. The market outlook suggests continued upside, with attention on the Fed's rate decisions. A trading strategy for Monsanto's upcoming earnings is presented, emphasizing a call spread approach. The video concludes with a discussion on the divergence between bonds and stocks, considering potential future convergence.

What was a significant factor contributing to the exaggerated market moves at the end of 2014?

• Strong economic data

• Rising interest rates

• Holiday season and vacations

• Increased trading volume

What was the performance of Bed Bath & Beyond's stock in the last six months of 2014?

• Increased by 33-34%

• Remained stable

• Decreased by 10%

• Increased by 50%

What is the anticipated timing for the Fed's rate hike as discussed in the transcript?

• Early 2016

• Late 2015

• Mid 2015

• Early 2015

What trading strategy is being considered for Monsanto ahead of its earnings report?

• Short selling the stock

• Selling call options

• Purchasing call spreads

• Buying put options

What is the potential relationship shift discussed between bonds and stocks?

• Bonds will outperform stocks

• Stocks will outperform bonds

• Convergence between bonds and stocks

• No relationship between bonds and stocks