Options Update: How to Play Yahoo After Alibaba IPO

The video discusses market volatility, focusing on the VIX index and its implications for trading. It analyzes Pier One's stock performance following a poor earnings report and explores options trading strategies. The discussion then shifts to Yahoo's stock in light of Alibaba's IPO, highlighting strategies to capitalize on market volatility.

What is the significance of the VIX index trading around 12?

• It indicates a stable market.

• It is considered an inflection point.

• It suggests a bullish market trend.

• It shows a lack of market activity.

What was the market reaction to Pier One's earnings report?

• The stock showed strong support levels.

• Investors were optimistic about future performance.

• There was a significant increase in stock price.

• The stock was described as being in Purgatory.

How did the options market react to Pier One's earnings announcement?

• There was a decrease in options volume.

• A big closing position was observed.

• Options prices remained stable.

• Investors opened new positions.

What strategy is suggested for trading Yahoo options post-Alibaba's IPO?

• Buy September 40 puts and 46 calls.

• Avoid trading Yahoo options entirely.

• Sell September 40 puts and 46 calls.

• Hold Yahoo stock until volatility decreases.

What is the expected market move for Yahoo options expiring next week?

• A 5% move

• A 12% move

• A 2% move

• A 9% move