Options Insight: Is It Time to Shop L Brands?

What trend is observed in the realized volatility of the S&P 500 during presidential election years?

• It remains constant throughout the year.

• It decreases steadily from September to November.

• It increases from mid-September to mid-November.

• It peaks in early September and declines thereafter.

How does seasonal volatility affect the analysis of election year volatility?

• It complicates the isolation of election year volatility.

• It reduces the overall volatility observed in election years.

• It has no impact on the analysis of election year volatility.

• It makes it easier to predict election year trends.

What is the significance of using Twitter option activity in market analysis?

• It provides insights into the expected bid price for Twitter.

• It helps in predicting the overall market trend.

• It determines the future stock price of Salesforce.

• It forecasts the annual earnings of Twitter.

Which strategy is suggested for trading L Brands stock based on expected earnings?

• Initiating outright shorts via put spreads.

• Buying call options at a higher strike price.

• Purchasing additional shares to increase holdings.

• Selling all existing shares immediately.

What is a potential consequence of excessive promotional activity for L Brands?

• Improved profit margins and earnings.

• Stable earnings with no significant impact.

• Increased store traffic and higher sales.

• A hit to margins and possible earnings guidance downgrade.