Options Insight: How to Play Big Lots

The video discusses current market conditions, focusing on the anticipation of Janet Yellen's speech at Jackson Hole and its potential impact on Fed fund futures and implied volatility. It also covers the recent earnings reports of discount retailers like Dollar General and Dollar Tree, highlighting their significant stock declines. The video suggests a stock strategy involving a collar option for Big Lots, given its year-to-date performance and the broader market context.

What is the market's expectation regarding the Fed's action at the September 21st meeting?

• A 70% chance of a rate hike

• A 30% chance of a rate hike

• No chance of a rate hike

• A 50% chance of a rate hike

Which discount retailer experienced its largest stock decline since going public?

• Dollar Tree

• Dollar General

• Big Lots

• Walmart

What is the primary reason for the stock decline of Dollar General and Dollar Tree?

• Supply chain issues

• Increased competition

• New market regulations

• Disappointing second quarter earnings

What is the purpose of the 57.5/50 collar strategy for Big Lots?

• To increase stock volatility

• To hedge against potential losses

• To reduce trading costs

• To maximize stock gains

How much did the collar strategy cost as of the morning it was priced?

• $0.50

• $0.30

• $0.10

• $0.20