How Netflix Is Playing in the Options Market

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.

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

• Contango

• Backwardation

• Inversion

• Deflation

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

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

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

• Partnership with Disney

• CEO resignation

• New product launch

• Increased competition from HBO

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

• Volatility increases significantly

• Volatility remains unchanged

• Volatility becomes unpredictable

• Volatility decreases significantly