Equity Armor's Joe Tigay Has an Options Trade for Amazon

The video discusses recent market trends, highlighting significant selling pressure and the difficulty in finding buyers. It analyzes the VIX levels and the potential for a market reversal, noting the need for high-volume selling. The options market is explored, focusing on the skew index and trading strategies. The NASDAQ's performance is reviewed, considering economic factors and Fed policies. Finally, a bullish trade strategy on Amazon using a call butterfly is presented.

What is the significance of the VIX index in market analysis?

• It predicts future interest rates.

• It measures the overall market volume.

• It indicates the level of market volatility.

• It tracks the performance of technology stocks.

What does the skew index measure in the options market?

• The difference in price between call and put options.

• The volatility of the stock market.

• The price disparity between downside and upside options.

• The average trading volume of options.

Why might options traders sell downside options?

• To reduce trading fees.

• To increase market liquidity.

• To capitalize on expected market declines.

• To hedge against market gains.

What concern is highlighted regarding the NASDAQ's performance?

• It is unaffected by global economic trends.

• It is outperforming other indices.

• It is heavily influenced by the energy sector.

• It is experiencing its worst month since 2008.

What trading strategy is suggested for Amazon?

• Short selling the stock.

• Investing in index funds.

• Using a call butterfly strategy.

• Buying individual stocks.