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Monday, September 14, 2015

2 dead throwaway days and Fed Spread

This is the part of trading I don't like. Today and Tuesday might as well not be here as the market is standing around in the sidelines waiting for Thursday.
This makes it difficult for me to find a direction, look at top or bottom lists, or whatever. News trumps technicals, and right now its all about the news.

So about the Fed decision. I am going to protect myself with downside with a leap but what if there is no raise? The market is going to jump. Lets look at a chart of what I am going to do as in an if then:


If there is a raise, we exit our leaps for profit and then we double down on our QQQ calls as the market will stumble with it, then see its healthy then start climbing.
If the market doesnt raise, we will have calls outside the money that will double or triple which should take care of our leap. Plus...its a leap. We have time to hold onto it if we want.

We are already in our leap, lets shore up on our calls to create a spread of sorts for the cubes after the announcement so we should be good either way:
Here is our in for the cubes:

Dig this: if the market does jump, this could suddenly double or triple as I have bought ourside the money. Buying outside the money lets me in on a low price because the stock isnt trading near 108.50, its at 104. But if this rate hike doesnt happen, the stock market is going to despring and jump high, possibily 108, 109, 110 and this call option will suddenly be at like 1.10. Maybe higher.
So now we are all set for Thursday.....

Thats all for now, I will keep watching.

Tradinginsider

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