How Headwaters Solutions CIO Rowe Is Trading the S&P 500 ETF

How Headwaters Solutions CIO Rowe Is Trading the S&P 500 ETF

Assessment

Interactive Video

Business

University

Hard

Created by

Quizizz Content

FREE Resource

The video discusses the volatility trends in the market, focusing on the VIX levels from 2016 to 2018. It highlights the impact of passive fund flows, geopolitical factors, and global macroeconomic conditions on market volatility. The speaker also delves into technical analysis, structural changes in volatility markets, and the predictive power of the skew index. A trading strategy involving buying upside calls and hedging is presented as a way to benefit from volatility expansion.

Read more

5 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What were the main factors contributing to the increase in volatility in 2018?

High interest rates and inflation

Passive fund flows and geopolitical events

Technological advancements and market saturation

Decreased consumer spending and high unemployment

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why is it important to recalibrate technical analysis in the current market?

To better understand the impact of structural changes in volatility

To incorporate new financial instruments

To account for new trading algorithms

To adjust for changes in market regulations

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does the skew index help predict in the market?

The level of concern among investors

The likelihood of a market crash

The performance of specific stocks

Future interest rate changes

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What strategy is suggested for trading volatility?

Short selling stocks

Buying upside calls and hedging

Investing in bonds

Holding cash reserves

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What recent market abnormality was observed related to the VIX curve?

A flattening of the VIX curve

A sudden spike in VIX values

An inversion of the VIX curve

A steep decline in VIX levels