Options Insight: How to Play UnitedHealth Group

The video discusses the significant drop in the VIX, the market's volatility index, following Brexit and the Trump election. The speaker suggests that the current contraction is too rapid and anticipates a return to higher volatility levels in the coming weeks. A trading strategy is proposed, focusing on buying volatility options for December. The discussion then shifts to the health insurance sector, particularly United Health, analyzing the market's reaction to political changes and suggesting a call spread strategy to capitalize on perceived overreactions.

What was the unexpected market behavior discussed in the first section?

• A rise in the VIX due to market downturn

• A steady VIX despite market fluctuations

• A significant drop in the VIX despite market downturn

• A rise in the VIX despite market stability

What is the speaker's expectation for market volatility in the coming weeks?

• Volatility will remain low

• Volatility will increase

• Volatility will stabilize

• Volatility will decrease further

What is the speaker's strategy regarding market volatility?

• Buy volatility options

• Hold current positions

• Avoid trading in volatility

• Sell volatility options

What sector is the focus of the speaker's trading strategy in the final section?

• Technology

• Energy

• Finance

• Healthcare

What trading strategy does the speaker suggest for United Health?

• Holding current shares

• Buying a call spread

• Selling short

• Investing in bonds