Looking at the ‘Brexit’ Opportunities Other than Sterling

The video discusses the concept of British trade, particularly in the context of Brexit and its impact on the Euro STOXX 50. It explores strategies involving put options with contingencies on the euro dollar, highlighting the potential cost savings. The discussion extends to gilts and sterling volatility, analyzing the implications of Brexit on long-term gilts and the potential credit risk. The video concludes with an evaluation of different trades and their value propositions.

What is the main idea behind the 'British Schadenfreude' strategy discussed in the video?

• Buying US stocks

• Investing in UK real estate

• Trading Euro STOXX 50 with a euro-dollar contingency

• Investing in Asian markets

How does the contingency on the euro-dollar affect the pricing of put options on Euro STOXX 50?

• It makes the options 50 to 70% cheaper

• It doubles the cost of the options

• It makes the options more expensive

• It has no effect on the pricing

What is the potential impact of Brexit on long-dated gilts according to the video?

• Increase in credit risk component

• Decrease in interest rates

• Stability in the market

• Increase in foreign investments

What is the proposed strategy for dealing with potential credit risk in gilts?

• Investing in short-term bonds

• Buying call options on gilts

• Selling gilts

• Using put options with a sterling contingency

What is the correlation discussed in the video that can help cheapen the structure of a trade?

• Correlation between technology and healthcare stocks

• Correlation between bonds and commodities

• Correlation between equities and FX

• Correlation between equities and real estate