How to Get In on GoPro Through the Options Market

The video discusses the recent market decline and the role of implied volatility in predicting market movements. It highlights investor strategies for protection using options, particularly focusing on the S&P 500. The video also examines GoPro's stock performance and how investors can use options to engage with the stock, despite it being hard to borrow. The discussion includes strategies for buying and shorting GoPro using options, providing insights into potential cost savings and investment approaches.

What does an implied volatility of 12% suggest about daily market movements?

• A move of plus or minus 150 dips

• A move of plus or minus 75 dips

• A move of plus or minus 50 dips

• A move of plus or minus 100 dips

How often is a 1.5% market move expected according to implied volatility?

• Once a year

• Once a week

• Once a month

• Once a quarter

What is the cost of a 5% out-of-the-money put in the S&P 500 on an annualized basis?

• Just under 600 basis points

• Just under 500 basis points

• Just under 400 basis points

• Just under 300 basis points

What is a unique characteristic of GoPro as a stock in the options market?

• It has high dividends

• It has low volatility

• It is hard to borrow

• It is easy to borrow

How can investors synthetically buy GoPro at a lower price using options?

• By selling both a call and a put

• By buying both a call and a put

• By buying a put and selling a call

• By buying a call and selling a put