Options Insight: How to Play Starbucks

Options Insight: How to Play Starbucks

Assessment

Interactive Video

Business

University

Hard

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The video discusses recent market trends, focusing on the lackluster volume and the VIX's stability despite market fluctuations. It anticipates a slow market range for the next few weeks, with potential influences from oil prices and the election. The upcoming jobs report is expected to exert downward pressure, with small put buying observed. The video also analyzes Starbucks' stock, highlighting its resilience despite poor earnings and suggesting a call spread strategy to capitalize on potential upside.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the current state of the market volume and VIX according to the discussion?

High volume and volatile VIX

Low volume and stable VIX

High volume and stable VIX

Low volume and volatile VIX

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What are some potential factors that could influence the market after the earnings season?

Changes in technology stocks

Oil price fluctuations and political events

Interest rate hikes

New product launches

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the market's current expectation regarding the upcoming monthly jobs number?

A significant upward move

A significant downward move

A volatile market reaction

No major movement expected

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How has Starbucks' stock performed despite recent earnings reports?

It has significantly dropped

It has remained stable

It has significantly increased

It has been highly volatile

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What strategic investment is suggested for Starbucks' stock?

Investing in bonds

A call spread option

Short selling the stock

Buying put options