Options Insight: How to Trade Lululemon

The video discusses market volatility following the Italian referendum, noting a subdued market reaction. It explores potential outcomes of the upcoming Fed meeting and suggests investment strategies using options to capture returns. The video also analyzes Lululemon's earnings, highlighting potential risks and hedging strategies to manage them.

What was the market's reaction to the Italian referendum?

• Suppressed volatility

• Significant gains

• Increased volatility

• Market crash

What is the expected outcome of the FOMC meeting according to the transcript?

• Stable market environment

• Significant gains

• Market crash

• Increased market volatility

What is a key strategy for professional investors during a quiet market period?

• Buying stocks

• Investing in real estate

• Owning options

• Selling bonds

What is unusual about Lululemon's recent market activity?

• Increased stock price

• Decreased customer rankings

• New product launch

• Uptick in discounting

What hedging strategy is suggested for Lululemon's earnings event?

• Investing in bonds

• Selling a 63 strike call and buying a 55-50 put spread

• Selling all shares

• Buying more stocks