Options Insight: How to Play VMware

Options Insight: How to Play VMware

Assessment

Interactive Video

Business

University

Hard

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The video discusses recent trends in market volatility, noting a structural change since 2011. It explores potential reasons for these changes, including conspiracy theories and QE. The video also covers the current earnings season, focusing on VM Ware and the Dell acquisition of EMC. A trading strategy is explained, involving selling puts and buying calls around VMW earnings, with expectations of low volatility.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What has been a significant trend in market volatility since 2011?

Unpredictable spot VIX

Stable spot VIX

Increase in spot VIX

Decrease in spot VIX

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What major event is expected to influence VM Ware's earnings report?

A major lawsuit

A new product launch

The Dell acquisition of EMC

A change in leadership

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the expected outcome of the Dell acquisition of EMC?

Shareholder approval

No impact on VM Ware

Shareholder disapproval

Regulatory disapproval

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the primary strategy discussed for trading VM Ware options?

Buying short-term puts and calls

Selling long-term puts and buying short-term calls

Buying both short-term and long-term puts

Selling short-term puts and buying long-term calls

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the expected impact of the Dell-EMC deal on VM Ware's stock?

Increase in volatility

No change in volatility

Unpredictable volatility

Decrease in volatility