Options Insight: How to Play Facebook

The video discusses market volatility influenced by the FOMC and Brexit, highlighting the rise in volatility post-earnings season. It analyzes Facebook's stock, emphasizing its dominance in digital advertising. A risk reversal trading strategy is explained, involving selling a put and buying a call. The video concludes with the use of the S&P 500 as a hedge in global equities, noting increased trading volumes and VIX activity.

What is one of the reasons for the lingering market volatility discussed in the video?

• The rise in oil prices

• The ongoing trade war

• The FOMC meeting outcomes

• The Brexit situation

What is the main focus of the discussion on Facebook's market performance?

• Its new product launches

• Its leadership in digital advertising

• Its declining user base

• Its recent data privacy issues

What trading strategy is suggested for Facebook in the video?

• Short selling

• Risk reversal

• Selling a call option

• Buying a put option

Why are investors using the S&P 500 according to the video?

• To speculate on tech stocks

• To hedge against market risks

• To diversify their portfolios

• To invest in emerging markets

What is the trend in VIX trading mentioned in the video?

• More trading on the calls side

• More trading on the puts side

• Equal trading on both sides

• No significant trading activity