I found that one of the few certain opportunities in the market after Trump took office is:
There is a clear announcement date for data disclosure and interest rate decisions. Trump has added a lot of certainty to their unboxing. Of course, the opportunities are aimed at the volatility level, and the options straddle is the best choice.
I am also continuously refining the details of the straddle.
1. Buy the data one day before the box opens. There have been instances where there was a big surge the day before, and after the announcement, there was actually no movement. After all, important data is scarce, and bearing an extra day of theta is well worth it.
2. The best expiration date is 2-3 weeks. The decay at the end is too fast, and the gamma of long-dated options is low, resulting in little volatility.
3. Try to use ATM to capture the maximum volatility!
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I found that one of the few certain opportunities in the market after Trump took office is:
There is a clear announcement date for data disclosure and interest rate decisions. Trump has added a lot of certainty to their unboxing. Of course, the opportunities are aimed at the volatility level, and the options straddle is the best choice.
I am also continuously refining the details of the straddle.
1. Buy the data one day before the box opens. There have been instances where there was a big surge the day before, and after the announcement, there was actually no movement. After all, important data is scarce, and bearing an extra day of theta is well worth it.
2. The best expiration date is 2-3 weeks. The decay at the end is too fast, and the gamma of long-dated options is low, resulting in little volatility.
3. Try to use ATM to capture the maximum volatility!