Options Insight: How to Trade the SPDR S&P Oil & Gas ETF

The video discusses upcoming risk events, including OPEC, the Italian referendum, and the FOMC meeting. It highlights the current low volatility in the market and its implications for equities. The options market's perspective on OPEC is explored, noting low implied volatility and specific trading strategies. Recommendations include being long convexity and using options to hedge or capitalize on potential market movements.

Which of the following events is NOT mentioned as a risk event in the transcript?

• Brexit referendum

• FOMC meeting

• Italian referendum

• OPEC meeting

What is the current state of the volatility index according to the transcript?

• Near record lows

• Near record highs

• Unpredictable

• Stable and high

How does the transcript describe the market's reaction to the election compared to Brexit?

• More volatile

• Less volatile

• Similar and benign

• Completely different

What is the recommended strategy for clients with low implied volatility?

• Long convexity or gamma

• Avoiding the market

• Short selling

• Buying high-risk stocks

Which ETF is mentioned as having exploded open interest?

• QQQ

• SPY

• XOP

• USO