Options Insight: How to Play Allergan

Kevin Kelly discusses current market trends, highlighting the influence of the Fed's comments on equity and bond markets. He analyzes the VIX, noting its low levels and potential for volatility spikes. Kelly also examines Allergan's stock, affected by a called-off Pfizer deal, and suggests a trading strategy. Finally, he speculates on potential Fed rate hikes, emphasizing the importance of the Fed's decisions on market stability.

What strategy does Kevin Kelly suggest for trading Allergan before the earnings announcement?

What are the implications of a potential rate hike by the Fed in July according to Kevin Kelly?