Options Insight: How to Play the iShares Russell 2000 ETF

The video discusses recent trends in market volatility, focusing on events like Brexit and the Fed. It introduces the concept of 'hedging fatigue' among investors and analyzes the longest period of volatility suppression. The video also explores the IWM ETF as a hedging tool, emphasizing the importance of defined risk strategies.

What is 'hedging fatigue' as discussed in the video?

• A strategy to increase market exposure

• A condition where investors are tired of maintaining hedges

• A new type of financial instrument

• A method to reduce trading costs

What does the video suggest about the current period of volatility suppression?

• It is the shortest period in history

• It indicates a stable market

• It is the longest period since 2011

• It suggests a decrease in market risk

Why is the IWM (Russell 2000 ETF) considered for hedging in the video?

• It has a high dividend yield

• It tracks large-cap stocks

• It has performed better than other indices

• It is less volatile than other ETFs

What is a 'put fly' trade as described in the video?

• A trade that focuses on currency exchange

• A trade that only involves buying stocks

• A trade with defined risk and four legs

• A trade with unlimited risk

What is the main advantage of the 'put fly' trade structure?

• It requires no initial investment

• It defines the maximum loss

• It minimizes transaction fees

• It allows for unlimited profit