It's hard to make real money with options during Fed cuts?

Discussion in 'Options' started by crgarcia, Jan 24, 2008.

  1. During this 0.75% surprise rate cut, purchased some .QQQFR (QQQQ June $44 Call) options.

    Altough I catched most of the upside move, only made modest profits.

    Options were expensive, volatility jacked up.
    So, during Fed cuts options are not a good choice?
    (Unless you buy them some days earlier, with volatilty premium at still reasonable levels)?
  2. IV sharply increases during big sell-offs, it has nothing to do with "fed cuts". QQQQ options will be a cheap again when the market settles down.

    NQ mini futures might be the better choice at this time.
  3. MTE


    June is way too far out for a short term trade. It's just not responsive enough.