Options Insight: Is It Time to Buy Alphabet?

Options Insight: Is It Time to Buy Alphabet?

Assessment

Interactive Video

Business

University

Hard

Created by

Quizizz Content

FREE Resource

The video discusses the current low VIX levels and surprising market activity with a high volume of puts compared to calls. It explores portfolio insurance strategies for September, highlighting the focus on end-of-September and early-October contracts. The discussion shifts to stock replacement strategies, particularly in tech and healthcare sectors, with a specific focus on Google. The video explains how to leverage low volatility for stock options and the benefits of call spreads in current market conditions.

Read more

5 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was surprising about the trading activity despite the low VIX level?

The high number of calls being traded

The low number of puts being traded

The three times amount of puts versus calls being traded

The equal amount of puts and calls being traded

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is one reason people are engaging in stock replacement strategies?

High volatility in the market

Inexpensive volatility

High cost of calls

Lack of sector leadership

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which sectors are people moving into as part of their stock replacement strategies?

Utilities and energy

Tech and healthcare

Real estate and finance

Consumer goods and services

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a benefit of using options for stock replacement strategies?

Limited risk to the options premium

Guaranteed profit

Unlimited risk exposure

High trading costs

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

At what point does stock replacement become less attractive?

When call activity increases significantly

When the VIX level rises

When call activity decreases

When the stock price falls