Options Update: How to Play SPX

The video discusses market trends in options trading, focusing on the balance between puts and calls in different contract months. It explores strategies for future market positioning, including selling and buying specific S&P 500 options. The discussion also touches on the Federal Reserve's potential interest rate changes and their impact on the market. Additionally, there is speculation about Verizon's potential takeover of AOL, analyzing its effects on the options market.

What was the observed trend in options trading for January compared to March?

• More calls were traded in January than March.

• Puts were traded more in January than March.

• Trading was more balanced in January than March.

• There was no trading activity in January.

Which strategy was suggested for trading with heightened volatility in the S&P 500?

• Buying both the 1850 SPX put and the 2100 SPX call in September.

• Selling the 2100 SPX call in September.

• Buying the 1850 SPX put in September.

• Selling the 1850 SPX put and buying the 2100 SPX call in September.

What is the market's expectation for the Federal Reserve's interest rate policy by the end of 2015?

• Interest rates will remain unchanged.

• Interest rates will decrease.

• Interest rates will increase to about 21 basis points.

• Interest rates will increase to about 66 basis points.

What was the implied volatility of AOL after the announcement of a potential takeover?

• 21%

• 33%

• 47%

• 66%

What past strategic deal did AOL engage in that is mentioned in the transcript?

• A joint venture with Verizon.

• A merger with Yahoo.

• Selling patents to Microsoft.

• Acquiring patents from Google.