Options Insight: How to Play Valeant

The video discusses current market trends, focusing on the VIX and market volatility. It speculates on the possibility of the Dow reaching 20,000 points and analyzes market complacency and potential risks. The video concludes with an introduction to a bearish trade strategy using cash-secured naked puts, highlighting the importance of focusing on price action over politics.

What is the current sentiment in the market according to the first section?

• Uncertain despite rising prices

• Stable with no price movement

• Optimistic with low volatility

• Pessimistic with high volatility

What external factor is mentioned as influencing market activity in the second section?

• The Federal Reserve Meeting

• The European Union Summit

• The Chinese Lunar New Year

• The US Presidential Election

What is the historical range of the VIX index mentioned in the second section?

• Between 8 and 10

• Between 12 and 14

• Between 14 and 16

• Between 10 and 12

What is the primary goal of the trading strategy discussed in the final section?

• To avoid market volatility

• To enter a stock at a lower level or get paid

• To sell stocks at a lower level

• To buy stocks at a higher level

Which of the following is NOT a factor leveraged in the trading strategy from the final section?

• Time decay

• Probability

• Market sentiment

• High relative volatility