Options Update: How to Play Safeway

The video discusses recent market volatility, focusing on the Dow's fluctuations and the impact of global markets on U.S. trends. It highlights Pepsi's strong stock performance and options market activity, despite broader market downturns. The potential split of Pepsi's soft drink and snack units is also considered. Additionally, a trading strategy for Safeway ahead of its earnings report is outlined, emphasizing risk management and potential returns.

What range has the S&P been fluctuating between recently?

• 2000 to 2100

• 1918 to 1968

• 1800 to 1900

• 1850 to 1950

What is one of the main reasons for the pressure on U.S. markets?

• Strong U.S. dollar

• Rising interest rates

• Sell-offs in Asian and European markets

• High inflation rates

What recent event has contributed to Pepsi's stock trading near all-time highs?

• Third quarter profit exceeding analyst estimates

• A major advertising campaign

• A new product launch

• A merger with Coca Cola

What is the potential strategic move discussed for Pepsi?

• Launching a new marketing campaign

• Acquiring a new beverage brand

• Splitting the soft drinks unit from the snack unit

• Entering the energy drink market

What is the trading strategy for Safeway ahead of its earnings?

• Buying the October 34 half 35 half call spread

• Selling short on Safeway stocks

• Investing in Safeway bonds

• Purchasing Safeway futures