Options Update: How to Play the Tech Rally

The video discusses recent market volatility, focusing on the S&P 500 and the increased buying of puts over calls. It highlights the constraints of volatility to equities, with energy and retail underperforming. Citigroup's stock volatility is examined in light of banking sector performance. Abercrombie & Fitch's CEO change and its impact on stock performance are analyzed, with mixed signals from the options market. A trading strategy involving the QQQ ETF is proposed, emphasizing technology and momentum stocks, with a focus on generating premiums through selling calls.

What was the notable trend in the S&P 500 options market recently?

• More calls than puts were bought

• Equal amounts of calls and puts were bought

• More puts than calls were bought

• No significant change in options activity

Which sectors have been the top performers in the last six months?

• Energy and Retail

• Healthcare and Technology

• Financials and Industrials

• Utilities and Consumer Staples

What recent event caused increased volatility in Citigroup's stock?

• A merger announcement

• Increased loan growth

• A change in CEO

• Setting aside more money for legal expenses

What was the market's reaction to Abercrombie and Fitch's CEO change?

• The stock fell by 7%

• The stock recorded its best gain in over nine months

• The stock fell by 30%

• The stock remained unchanged

What is the suggested trading strategy involving the QQQ ETF?

• Short the ETF and buy calls

• Buy the ETF and hold it long-term

• Sell the ETF and buy puts

• Buy the ETF and sell the January call against it