Q's Straddle before FOMC

do you guys think it'll break the 52 wk low (36.55)?

 

We'll see. If it breaks support around 37 it could go down to 35 very easily.

 

5% - 8% move on the QQQQ is RARE.

 

On the day of meeting yes it is rare but within a couple of weeks after the meeting I have had it go for that and more.

 

Original poster is interested in a 1-2 day move, not weeks. And weeks could play havoc on a July straddle.

 

If you have been listening to TOS, you'd not trade OEX because the pricing.

 

I am the original poster. I guess I didn't make it clear though. I am using July options so I have a couple of weeks to make it work. I bought the put side of the trade when price was above 38 while they were cheaper and bought the call side today. Puts are in the money right now. Calls are kind of a hedge at this point. Will hold and see.

 

Essentially you legged into it which works just fine but its a directional play, rather than pure vol play. If you are right on direction and timing it will work fine.

 

Thanks, I do appreciate all the input everyone has given on this one.

 

Good thing it's only paper then, huh?