Options Insight: How to Trade J.C. Penney

Options Insight: How to Trade J.C. Penney

Assessment

Interactive Video

Business, Mathematics

University

Hard

Created by

Quizizz Content

FREE Resource

The video discusses the current state of the market, highlighting low volatility and incremental moves despite new record highs. It analyzes asset classes like oil, gold, VIX, and bonds, noting the VIX's recent rise. The speaker emphasizes respecting market momentum and the lack of pullbacks. A trading strategy involving JCPenney is explained, focusing on selling a cash secured put to potentially acquire stock at a lower level or earn a return if the stock remains stable or rises.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the current trend observed in the market according to the video?

Sudden spikes in trading volume

Rapid decline in asset prices

Low volatility with small incremental moves

High volatility with large swings

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Despite the stock market reaching new highs, what unusual trend is observed with the VIX?

The VIX is increasing

The VIX is unaffected

The VIX remains stable

The VIX is decreasing

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the anticipated movement for the VIX according to the analysis?

Stability at $15

A drop to $10

A rise to $30

A rise to $20

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the main strategy discussed for trading JCPenney?

Buying the stock outright

Short selling the stock

Selling a cash-secured put

Buying call options

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the expected return on risk for the JCPenney strategy?

8%

5%

2%

10%