How to Play CyrusOne Ahead of Earnings

The video discusses the current market rally, highlighting the low skew levels in the options market, which suggests a lack of portfolio insurance by investors. It explores investor sentiment and the muted VIX, indicating high stock and sector correlations. The discussion shifts to a trading idea involving data centers, with Google investing $13 billion and Equinix showing strong earnings. The strategy involves buying call options to capitalize on potential growth.

What does a low skew in the options market typically indicate about investor behavior?

• Investors are diversifying their portfolios extensively.

• Investors are expecting a significant market crash.

• Investors are not purchasing much portfolio insurance.

• Investors are heavily hedging against market downturns.

How does the current behavior of investors regarding portfolio insurance compare to last year?

• Investors are buying more insurance than last year.

• Investors are buying less insurance than last year.

• Investors are buying the same amount of insurance as last year.

• Investors are not concerned about market fluctuations.

What does a muted VIX suggest about the market?

• Decreased investor confidence.

• High volatility and uncertainty.

• Low volatility and stability.

• Increased investor fear.

What is the significance of Google's $13 billion investment in data centers?

• It implies a shift away from cloud computing.

• It shows a reduction in data center investments.

• It suggests a growing demand for data infrastructure.

• It indicates a decline in the tech sector.

What is the recommended investment strategy for Cyrus One?

• Purchasing real estate.

• Investing in bonds.

• Buying the September 55 call option.

• Short selling the stock.