Options Insight: How to Trade Exxon

The video discusses the current state of the stock market, highlighting record highs and the disconnect between market performance and real-world events. It examines the role of earnings in driving the market and analyzes the unusual behavior of the VIX despite market surges. The potential for market shocks in March due to political and economic events is considered, with a focus on the unknown factors that could impact the market. The video concludes with a detailed analysis of a bullish trade strategy for Exxon, considering its performance relative to the Dow and potential gains from options trading.

What has been the primary driver of the markets according to the discussion?

• Political events

• Earnings

• Global conflicts

• Interest rates

What unusual behavior was observed in the VIX despite market highs?

• It remained unchanged

• It reached an all-time low

• It decreased significantly

• It was positive for the week

Which month is targeted as a potential volatility event due to political and economic factors?

• February

• January

• March

• April

What is the speaker more concerned about in terms of market risks?

• Unknown unknowns

• Known unknowns

• Unknown knowns

• Known knowns

What is the expected outcome if Exxon returns to its 2016 end-of-year price?

• The option will lose value

• The option will break even

• The option will gain about 70%

• The option will double in value