Fiscal Volatility Coming

Discussion in 'Options' started by HopelessTrader, Feb 2, 2013.

  1. I believe "fiscal cliff" part 2 is on the horizon. We should start to hear about it in the news later this month. Vix is down at the moment.

    I sat the last one out w/ the holidays and all.

    Any good ideas out there?
  2. Got dates?????
  3. No dates. I guess I'm assuming that the news will not continue in an apparent euphoric state.

    GDP was lower. They said ah it's because government spending was lower. But maybe the private sector isn't picking up the slack.

    Then unemployment went back up a little. That news was basically disregarded by equities also.

    Pimpco says money isn't quite coming out of bonds yet like some were saying.

    Maybe equities have gotten a little ahead here. i know it's too soon to tell but i know that there was a lot of bond buying at the last couple major announcements.

    if volatility is low, then maybe it's cheaper to get short-term pullbacks that way?
  4. What do you think will happen next week and the following.... past that who knows.... trends up in some middle to later stage.... I'm not good at calling the future date of major reversals. So I don't even try....
  5. I am going into next week expecting to range trade. We don't have any major US news until midweek.

    This chart, i believe is an important one. I believe if treasuries can hold here and head up then I will be expecting some profit taking in the ES, with maybe even some pullback. if that happens, i will be range trading with a short bias on the short-term. But, if it breaks below then i will expect more ES upside.

    What are you expecting for this next week?

    i agree with you. i try not to predict too far out. But, i do like to think out that far, so that i can plan how I would respond to given situations if they were to arise.
  6. .
  7. Calendars and Double Diagonals seem to be the strategy to use. Been trading some weekly Calendars on RUT and SPX with some success
  8. What expiration are you using for your long options when you trade the weekly calendars?
  9. Monthly option with more than 20 days