Options Update: How to Play Southwest Airlines

The video discusses recent market trends, focusing on the VIX options expiration and its impact on the market. It highlights the performance of Yahoo's stock following its third-quarter earnings and the associated options activity. The video also presents a trade strategy for Southwest Airlines, emphasizing a leveraged approach using options to manage valuation concerns.

What was the significant market movement observed in the S&P over the last two weeks?

• A U-shaped recovery

• A V-shaped price action

• A steady decline

• A flat trend

What was a major factor contributing to Yahoo's stock hitting a one-month high?

• A merger with Microsoft

• A one-time gain from Alibaba stock sale

• A partnership with Google

• A new product launch

What type of options strategy was observed around Yahoo's stock post-earnings?

• Iron condor

• Put buying

• Call spread buying

• Straddle selling

What is the main concern when using a leveraged trade strategy for Southwest Airlines?

• The stock might decline sharply

• The options might expire worthless

• The stock might move too much to the upside

• The stock might not move enough

What is the expected profit range for the Southwest Airlines trade strategy?

• Between 37 and 39

• Between 35 and 37

• Above 41

• Between 39 and 41