Options Update: Playing the SPDR S&P 500 ETF Trust

The video discusses recent market volatility, driven by fear and various global concerns such as Ebola and slowing growth in Europe. The speaker highlights the role of the Federal Reserve in influencing market sentiment and suggests a trading strategy involving SPY straddles. The discussion also covers the potential for the VIX to decrease if certain conditions are met, including supportive comments from the Fed and containment of Ebola fears.

What were some of the triggers for the recent market volatility?

• A new technology breakthrough

• A major political election

• Fed minutes and global growth concerns

• A sudden increase in oil prices

What is the significance of the 18.5 area for SPX in the discussed trading strategy?

• It is a moving average

• It is a target price

• It is a support level

• It is a resistance level

Which trading strategy was suggested to manage risk in the current market?

• Buying call options

• Selling futures

• Buying a straddle

• Short selling

What could potentially bring the VIX below 20 according to the discussion?

• A rise in consumer spending

• A new trade agreement

• Comments from the Fed and Ebola containment

• A decrease in interest rates

What role does the Fed play in the current market sentiment?

• It is a minor influence

• It is a major driver

• It has no impact

• It only affects long-term trends