Options Insight: How to Trade the S&P 500 ETF

The video discusses recent trends in the stock market, highlighting an unusual scenario where both equities and volatility are rising simultaneously. Typically, these two have an inverse relationship. The video explores factors contributing to this phenomenon, such as the buying back of call options and the impact of market rallies. It also touches on historical examples of volatility during upward market movements. Finally, the video presents a trading strategy that leverages option skews, suggesting selling call options to buy put options to benefit from current market conditions.

What unusual relationship is typically observed between equities and volatility?

What are the two main factors contributing to the current market behavior as discussed?

How does the current market volatility relate to the historical example of the 1999 dot-com bubble?

What trading strategy is being considered to take advantage of the current market skew?

What is the expected outcome of the proposed trade involving selling call options and buying put options?