Options Insight: How to Play Mattel

The video discusses recent intraday volatility trends, focusing on the S&P 500's lack of significant declines and the periodicity of volatility events. It explores realized volatility, highlighting low levels since 2015, and presents trading strategies that leverage volatility skew. The video also analyzes Mattel's volatility, emphasizing elevated implied volatility before earnings and suggesting a trading strategy to capitalize on this term structure.

What is the realized volatility of the S&P 500 over the last 20 days?

• Close to 20%

• Around 10%

• Approximately 15%

• Just over 5%

How often have volatility events occurred since August 2015?

• Every 8-9 months

• Every 6-7 months

• Every 4-5 months

• Every 2-3 months

What is the preferred strategy for taking advantage of skew in volatility?

• Investing in indices

• Using collars at the single stock level

• Short selling stocks

• Buying long volatility products

What is the expected revenue growth for Mattel in the fourth quarter, excluding Disney Princess?

• Down 1.2%

• Up 1.2%

• Up 3.5%

• Down 3.5%

What trading strategy is suggested for Mattel around earnings?

• Selling March 3 expiration 32 calls

• Buying March 3 expiration 32 calls

• Selling February 28 1/2 strike puts

• Buying February 28 1/2 strike puts