Options Update: How to Play Yum! Brands

The video discusses the current state of the VIX trading and market mood, noting that despite higher VIX levels, the market remains business as usual. It then analyzes Sears options, highlighting high implied volatility due to vendor fears of non-payment. The video also presents a trading strategy for Yum Brands, focusing on a potential upside surprise in earnings. Finally, it provides an outlook on business performance, noting expected growth in the US and challenges in China.

What was the general mood on the trading floor despite the VIX trading higher?

• Excitement and optimism

• Business as usual

• Confusion and chaos

• Panic and uncertainty

Why is the implied volatility for Sears options extremely high?

• Due to high trading volume

• Because of vendor concerns about payments

• Because of a recent stock split

• Due to a surge in stock price

What is the main reason traders are hesitant to trade Sears options?

• High insurance premiums

• Low stock price

• Lack of market interest

• High trading fees

What is the trading strategy discussed for Yum Brands?

• Call spread strategy

• Short selling

• Buying and holding stocks

• Dividend reinvestment

What is the expected growth rate for Yum Brands' business in the US?

• 4%

• 10%

• 13%

• 7%