Options Insight: How to Trade Twitter

The video discusses the market's reaction post-election, highlighting a relief rally and strong economic indicators like low unemployment and high GDP. It predicts potential double-digit earnings growth in 2017. The VIX, a measure of market volatility, is analyzed, showing a decrease and suggesting more upside for stocks. The video also covers a specific options strategy for a potential Twitter takeover, explaining how to use a calendar spread to capitalize on takeover rumors.

What is one of the key indicators of a solid financial foundation mentioned in the video?

• Record corporate profits

• Decreasing cash on balance sheets

• High unemployment rates

• Low GDP growth

What does a muted VIX typically suggest about the stock market?

• Increased volatility

• Potential upside in stocks

• Higher interest rates

• Decreased trading volume

What is the typical range for the VIX index as mentioned in the video?

• 5 to 15

• 10 to 30

• 12 to 20

• 15 to 25

What is the primary goal of the option strategy discussed for a potential Twitter takeover?

• To generate immediate revenue

• To capitalize on a potential takeover event

• To minimize trading risks

• To diversify investment portfolio

In the Twitter takeover strategy, what is the purpose of selling a June $20 call?

• To increase the cost of the trade

• To reduce the potential profit

• To hedge against market downturns

• To finance the purchase of a January 17 call