How to Play Apple Ahead of Earnings

How to Play Apple Ahead of Earnings

Assessment

Interactive Video

Business

University

Hard

Created by

Quizizz Content

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The video discusses the current market volatility, focusing on the tech sector and the VIX VXN spread. It highlights the orderly behavior of volatility markets and the absence of a fear trade despite market sell-offs. The discussion shifts to Apple's market position, its upcoming product rollout, and a call tree strategy to manage risk and profit from Apple's stock movements.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the main reason for the tech sector's increased volatility compared to the broader market?

Higher interest rates

Government regulations

VIX and VXN spread widening

Increased consumer spending

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How has the volatility market behaved despite the recent sell-off?

It has been fairly orderly

It has shown extreme outlier moves

It has been completely stable

It has been unpredictable

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the purpose of using a call tree strategy in trading?

To avoid any market exposure

To limit downside risk and manage potential profit

To increase the break-even point

To maximize losses

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the expected move for Apple based on the options pricing?

3%

10%

6.5%

1.5%

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why is there a big premium in Apple's options going into the earnings announcement?

Due to a stable market environment

Because of a decrease in demand

Because of the dynamics in the marketplace

Due to low market volatility