Why MKM's Strugger Thinks It May Be Time to Binge on Netflix

The video discusses the current state of market volatility, highlighting a VIX inversion and a shift to a high volatility regime after years of low volatility. It examines investor behavior, noting a tendency to fade volatility and buy dips, despite signs of increased market risk. The video also covers client insights, revealing a return to short volatility exposure and market complacency. Finally, it presents a risk management strategy for Netflix stock using a costless collar approach.

What is the significance of the VIX inversion mentioned in the video?

• It means that the market is in a bull run.

• It indicates a period of low market volatility.

• It suggests a potential increase in market volatility.

• It shows that the market is stable.

How are most investors reacting to the current high volatility environment?

• They are embracing the new volatility regime.

• They are ignoring the changes and sticking to past strategies.

• They are investing more in bonds.

• They are selling all their stocks.

What does the term 'short volatility exposure' refer to?

• Holding cash reserves.

• Buying stocks during a market dip.

• Investing in long-term bonds.

• Betting that volatility will decrease.

What is a 'costless collar' in the context of risk management?

• A method to hedge against potential losses without upfront costs.

• A way to predict market trends.

• A strategy to maximize profits in a bull market.

• A technique to increase stock holdings.

Why might an investor choose to use a costless collar strategy with Netflix?

• To sell their stocks at a higher price.

• To avoid paying taxes on capital gains.

• To hedge against potential losses while staying invested.

• To increase their stock holdings significantly.