Options Insight: The ‘Shark Fin’ Trade

The video discusses the shift in investor sentiment to a bullish stance post-elections, as seen in the options market. It explains the concept of skew, highlighting the premium for downside protection over upside calls. The video also covers correlation and dispersion in US equities, noting significant sector performance variations. Finally, it introduces the 'shark fin trade' strategy, which involves specific options trades to capitalize on potential market movements.

What does a decrease in skew indicate about investor sentiment?

• Investors are more bullish.

• Investors are confused.

• Investors are more bearish.

• Investors are neutral.

What has been the trend in correlation among S&P 500 stocks since the election?

• Correlation has fluctuated randomly.

• Correlation has decreased significantly.

• Correlation has remained stable.

• Correlation has increased significantly.

Which sectors have outperformed since the election according to the video?

• Financials and industrials

• Utilities and consumer staples

• Healthcare and energy

• Large cap tech stocks

What is the primary focus of the 'shark fin trade' strategy?

• Maximizing short-term gains

• Predicting long-term market trends

• Protecting against market downturns

• Capitalizing on market volatility

What might cause a shift in market sentiment as discussed in the shark fin trade section?

• A rise in interest rates

• Profit-taking by investors

• A decrease in unemployment

• A new economic policy