How Options Strategist Steve Sosnick Is Playing Walgreens Boots

The video discusses the current market sentiment, focusing on the VIX curve and its implications for future market activity. It highlights the high risk tolerance in equity markets, with small caps being seen as a haven. The video also covers changes in the Dow Jones Industrial Average, specifically the replacement of GE with Walgreens Boots Alliance, and suggests strategies for capitalizing on such changes. It concludes with a discussion on volatility and options strategies, emphasizing the importance of managing risk through strategic trades.

What does a steep VIX curve indicate about future market activity?

• Increased market activity in the fall

• A quiet summer with no significant changes

• Decreased risk tolerance among investors

• Immediate market downturn

Why might small caps be considered a haven from tariffs?

• They are more domestically focused

• They have a larger exporting base

• They are less affected by market volatility

• They are more internationally focused

What significant change was recently announced for the Dow Jones Industrial Average?

• Exclusion of S&P 500

• Exclusion of Walgreens Boots Alliance

• Inclusion of Walgreens Boots Alliance

• Inclusion of GE

What is a potential risk when a stock is added to the S&P 500?

• It is no longer indexed

• It could experience a dangerous rally

• It attracts less investment

• It becomes less volatile

What strategy is suggested to manage risk when a stock's volatility rises?

• Buy more stocks

• Invest in mutual funds

• Sell calls and buy further out-of-the-money calls

• Hold the stock indefinitely