Options Strategy for Walgreens: Diagonal Spread

The video discusses the stock performance of Avon Products and Walgreens. Avon is facing a downgrade due to currency risks, with options activity indicating a bearish outlook. Walgreens, on the other hand, is experiencing a bullish trend due to strong earnings and strategic deals. A trading strategy involving a diagonal spread is suggested for Walgreens. The video also provides a market overview, highlighting the decoupling of oil and S&P 500 movements, and warns of potential risks in the latter half of the year, emphasizing the importance of monitoring the VIX.

What was the primary reason for BMO's downgrade of Avon Products?

• Management changes

• High competition in the market

• Currency risks related to Russia

• Poor sales performance

What does the large purchase of January 10 calls for Avon Products suggest?

• An optimistic outlook

• A bearish outlook

• A bullish outlook

• A neutral outlook

Why is the speaker bullish on Walgreens' stock?

• Due to a decrease in competition

• Because of a merger announcement

• Because of a solid earnings beat

• Due to a new product launch

What is the trading strategy suggested for Walgreens?

• Buying and holding

• A diagonal spread

• Day trading

• Short selling

What is a potential concern for the market in the back half of 2015?

• Interest rate risk

• Technological disruptions

• Rising inflation

• Decreasing oil prices