Interactive Brokers' Sosnick Has a Trade for IBM

The video discusses the VIX curve, highlighting its recent changes due to a crisis, including a shift from contango to backwardation. It explores the resurgence of short volatility trades and the role of ETFs like SVXY. The analysis extends to tech stocks, focusing on Cisco and IBM, with insights into IBM's trading patterns and strategies using options to manage risk and potential returns.

What does a backwardation in the VIX curve indicate?

• Market stability

• Market panic

• Decreasing volatility

• Increasing stock prices

Which ETF is mentioned as having influence in the short volatility trade?

• QQQ

• DIA

• SVXY

• SPY

What is the historical normal level for the VIX?

• 30

• 25

• 19

• 15

Which company was noted for selling IBM shares into strength?

• Berkshire Hathaway

• Microsoft

• Google

• Apple

What strategy is suggested for managing IBM's stock if you expect a small pullback?

• Buying call options

• Selling call options

• Buying put options

• Selling put options