Options Update: How to Play Ambarella

The video discusses the quiet stock market in August, highlighting the challenges faced by options traders due to low implied volatility. It anticipates upcoming economic events like nonfarm payrolls and the FOMC meeting, which may introduce market volatility. The video also analyzes Ambarella's trade strategy, linked to GoPro's production changes, and speculates on potential Federal Reserve interest rate hikes, which could impact market dynamics.

What has been the main challenge for retail options traders in August?

• High transaction fees

• Low implied volatility

• Lack of trading platforms

• Excessive market volatility

What event is expected to potentially increase market volatility in September?

• FOMC meeting

• Nonfarm payrolls data

• Quarterly earnings reports

• Labor Day holiday

What was the primary reason for Ambarella's market challenges related to GoPro?

• Oversupply of Hero 4 cameras

• Lack of consumer interest

• Technological issues with chips

• High production costs

What is the potential upside of the Ambarella call spread strategy discussed?

• $1.40

• $2.50

• $2.00

• $1.60

What is the current probability of a Federal Reserve rate hike in September?

• 50%

• 35%

• 27%

• 15%