How Netflix Is Playing in the Options Market

How Netflix Is Playing in the Options Market

Assessment

Interactive Video

Business

University

Hard

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The video discusses recent market trends, focusing on the impact of the Federal Reserve's actions, particularly the end of QE3, on market volatility and sentiment. It explains the concepts of contango and backwardation in options trading, indicating potential market movements. The video also analyzes Netflix's stock performance post-earnings, highlighting increased competition and volatility in the streaming sector. Despite a positive earnings report, Netflix's stock faced a significant drop, with options suggesting further downside potential.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the term used to describe an upward sloping term structure of volatility in options?

Contango

Backwardation

Inversion

Deflation

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What major event is considered a catalyst for the recent market downturn?

End of QE 3

Rising oil prices

ECB interest rate hike

US-China trade war

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does the ongoing backwardation in the market suggest?

Decrease in market volatility

Increase in market confidence

Potential for more movement in the near term

Stability in the market

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What recent event affected Netflix's stock performance despite beating earnings expectations?

Partnership with Disney

CEO resignation

New product launch

Increased competition from HBO

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the general trend in options volatility after earnings announcements?

Volatility increases significantly

Volatility remains unchanged

Volatility becomes unpredictable

Volatility decreases significantly