Options Insight: How to Play the VIX

The video discusses upcoming market events, including the OPEC meeting, Italian referendum, and FOMC meeting, and their potential impacts on market volatility. It explores strategies for hedging against these events using VIX options, emphasizing the importance of being prepared for unexpected market reactions.

What is the expected market move for the US ETF tracking WTI crude futures around the OPEC meeting?

• 9%

• 6%

• 12%

• 3%

Why might the Italian referendum be significant for markets?

• It is expected to have no impact.

• It is a routine political event.

• It could trigger unexpected market reactions similar to Brexit.

• It is unrelated to any populist movements.

What is the market's current stance on the December FOMC meeting?

• Expecting a rate decrease

• Expecting no change in rates

• Uncertain about the outcome

• Near universal pricing in of a rate increase

What is the main goal of the hedging strategy discussed in the final section?

• To minimize potential losses

• To avoid any market participation

• To speculate on currency fluctuations

• To make a large profit

What is the structure of the trade involving VIX December options?

• Buying both a put and a call

• Selling a put and buying a call spread

• Selling both a put and a call

• Buying a put and selling a call