How Benchmark's Kelly Is Trading Crown Castle International

The video discusses the current market rally from oversold conditions and the elevated implied volatility, particularly in the context of macroeconomic risks. It then introduces a trade strategy involving Crown Castle, a company providing cell phone towers and fiber optic networks, which is pivotal in the 5G build-out. The strategy aims to capitalize on the high implied volatility by selling a put and buying a call, offering a defensive play with potential upside as telecom companies compete in the 5G space.

What is the main concern about the current market rally discussed in the video?

• Implied volatility is at an all-time low.

• The rally is based on solid economic data.

• There is a resolution to trade and central bank issues.

• The market might be getting ahead of itself due to unresolved issues.

What is the primary business of Crown Castle as mentioned in the video?

• Providing cell phone towers and fiber optic networks

• Manufacturing smartphones

• Developing software applications

• Investing in renewable energy

Why is Crown Castle considered a defensive investment?

• It collects regular rent payments from major telecom companies.

• It is involved in speculative technology ventures.

• It is heavily reliant on government contracts.

• It has a high beta compared to the market.

What is the implied volatility of Crown Castle mentioned in the video?

• 10

• 12

• 20

• 30

What is the potential benefit of the investment strategy involving Crown Castle?

• High risk with no potential upside

• Guaranteed returns with no risk

• Unlimited upside with a lower cost basis

• Limited downside and limited upside