How Benchmark's Kevin Kelly Is Playing Zayo

Kevin Kelly from Benchmark Investments discusses the banking sector's performance, highlighting the unusual options trading patterns. He then shifts focus to the industrial sector, noting bearish sentiment due to trade issues. Finally, he provides insights into ZEO's corporate action and a strategic options trade involving their fiber optic assets.

What unusual trading activity was observed in the banking sector?

• More puts than calls were traded.

• Equal amounts of calls and puts were traded.

• More calls than puts were traded.

• No significant trading activity was observed.

Why are investors bearish on the industrial sector?

• Because of a strong dollar and trade issues.

• Owing to high oil prices.

• Because of low consumer demand.

• Due to a weak dollar affecting overseas sales.

What is the potential impact of a China trade deal on the industrial sector according to options investors?

• It will significantly boost the sector.

• It may not have a major impact.

• It will negatively affect the sector.

• It will lead to increased volatility.

What corporate action is Zeo undergoing?

• A stock buyback program.

• Putting itself up for sale.

• A merger with another company.

• Issuing new shares.

What makes Zeo's assets particularly valuable?

• Their significant cash reserves.

• Their extensive retail network.

• Their large fiber optic network essential for IoT and 5G.

• Their strong brand recognition.