Options Insight: How to Play LinkedIn

The video discusses global volatility, focusing on various indices like VIX, VVX, and JCJ. It highlights the Global Financial Stress Index (GFSI) and its correlation with VIX, emphasizing that volatility is not as low as perceived. The challenges faced by institutional investors in a high volatility environment are explored, along with strategies like hedging and stock replacement. A specific investment strategy for LinkedIn is also presented, involving options to manage risk and capitalize on market movements.

What is the relationship between the Global Financial Stress Index (GFSI) and the VIX index?

• GFSI is always higher than the VIX index.

• They are well correlated.

• They are not related at all.

• They are inversely correlated.

Why is it challenging for institutional investors to find opportunities in the current market environment?

• Due to the lack of available stocks.

• Because of the increase in interest rates.

• Because of the high volatility levels.

• Due to the decline in volatility and market fluctuations.

What strategy is suggested for investors who have benefited from a market rise?

• Investing in bonds.

• Taking down some risk and replicating options synthetically.

• Holding onto their current investments without changes.

• Buying more stocks.

What is the implied volatility for LinkedIn's next round of earnings?

• Around 65%

• Below 50%

• Above 70%

• Exactly 60%

What is the potential benefit of selling a 135 strike call for LinkedIn stock?

• You lose 3% of your investment.

• You gain almost 3% and potentially sell the stock 20% higher.

• You gain 5% and sell the stock at the same price.

• You lose the opportunity to sell the stock.