Options Insight: Is Trading Red Hat the Right Solution?

The video discusses current market trends, focusing on the impact of Brexit and the VIX index. It highlights the debate among traders and the potential market reactions to Brexit. The second part shifts to the tech sector, specifically analyzing Red Hat's market position and a trading strategy involving call spreads. The discussion includes expectations for Red Hat's earnings and potential stock movements.

What does the speaker believe about the UK's decision regarding Brexit?

• The UK will remain in the EU.

• The UK will have no impact on the market.

• The UK will definitely leave the EU.

• The UK will delay the decision.

What does an elevated VIX level indicate about the market?

• Increased market uncertainty

• Decreased market activity

• Increased market stability

• Decreased market volatility

What is expected to happen to the VIX if Brexit occurs?

• The near-term VIX will rise significantly.

• The near-term VIX will decrease slightly.

• The VIX will remain unchanged.

• The long-term VIX will decrease.

What investment strategy is discussed for Red Hat?

• Investing in bonds

• A one by two call spread

• Selling all Red Hat stocks

• Buying only 85 strike calls

What is the market's expectation for Red Hat's stock movement?

• A 20% decrease

• No movement

• A 6 to 7% move

• A 10% increase