Options Insight: How to Play American Express

Scott Bauer, a senior market strategist, discusses the upcoming earnings report for American Express, highlighting the impact of losing Costco exclusivity. He suggests a bearish outlook, recommending put spreads as a strategy. Bauer predicts limited upside potential and significant downside risks for Amex, citing competitive pressures and market conditions.

What is the implied one-day move for American Express options as discussed by Scott Bauer?

• 2%

• 4%

• 6%

• 8%

Why does Scott Bauer describe American Express as being on 'uneven footing'?

• Due to a recent merger

• Because of a new competitor

• Increase in interest rates

• Loss of Costco exclusivity

What strategy does Scott Bauer use to capitalize on the potential downside of American Express stock?

• Buying call options

• Selling futures

• Short selling

• Buying put spreads

What is the maximum loss Scott Bauer anticipates from his put spread strategy?

• $2.00

• $1.00

• $0.50

• $1.50

What does Scott Bauer identify as the potential upside limit for American Express stock?

• $60

• $70

• $63

• $65