Options Update: How to Play Alibaba

The video discusses recent market volatility, highlighting the intense volatility event since 2012 and its impact on equities, particularly in the US. It examines hedge fund performance during this period, noting challenges faced by even experienced investors. The video also explores options activity in AIG, indicating a bias towards calls and potential short-term upside. Finally, it previews Alibaba's upcoming earnings, expressing caution based on historical IPO performance and analyst expectations.

What was the significant market event discussed in the first section?

• A new IPO launch

• A V-shaped recovery

• A major stock split

• A new government policy

What was the primary focus of the AIG discussion?

• AIG's stock buyback program

• AIG's new product launch

• AIG's recent option activity

• AIG's merger with another company

What is the expected short-term movement for AIG's stock according to the discussion?

• Significant downside

• Significant upside

• No movement

• Moderate downside

What is the historical trend for large internet IPOs on their first earnings report?

• They remain stable

• They experience high volatility

• They typically trade down

• They typically trade up

What trading strategy is suggested for Alibaba in the discussion?

• Selling all shares

• Using a put spread collar

• Investing in bonds

• Buying call options