Options Update: How to Play Nike

The video discusses recent market trends, focusing on volatility and banks' hedging activities. It highlights eBay's potential workforce reduction amid its separation from PayPal, noting investor confidence in the company's direction. The video also analyzes Nike's stock, expressing caution due to high valuation despite positive earnings expectations.

What financial product are banks using to manage volatility towards the year-end?

• Futures contracts

• Variant swaps

• Equity swaps

• Credit default swaps

What significant corporate action is eBay considering, according to the reports?

• Merging with PayPal

• Acquiring a new company

• Laying off 10% of its workforce

• Launching a new product line

How did the market react to the news about eBay's potential workforce reduction?

• Investors sold off their shares

• The company announced a dividend increase

• There was a large trade involving February 60 calls

• The stock price fell significantly

What is the main concern about Nike's stock despite its recent performance?

• High valuation

• Low dividend yield

• Poor management decisions

• Decreasing market share

What trading strategy is suggested for Nike to enhance yield?

• Buying more shares

• Selling December 101 strike calls

• Investing in bonds

• Short selling the stock