I am thinking of buying a 1-strike OTM SPY strangle (calls and puts) on Tuesday, November 3 - the day of the US election. I prefer the Wednesday Nov 04 options - but I am concerned about any delay in the results. So I might go with the Friday Nov 06 options. If I go with the Friday options then I most likely will trade the QQQ options instead. Any thoughts on this trade?
If the results get delayed, your strangle should appreciate in value. Options are expensive right now. I prefer to cut risk and wait for an outcome. Feels too much like a gamble otherwise.
Could be some good movement, but iv is likely to be elevated when you buy, then drop like a rock soon after. Maybe try a long just otm put on uvxy. Then put in a gtc sell set to when you have a double. Might have to roll if it doesn't go anywhere in a couple weeks.
if anything I'd do this on the ES futures so at least you can close it overnight. the risk premium may be gone by cash open but that's anyone's guess