straddles on news?

Discussion in 'Financial Futures' started by jjk2, Feb 1, 2008.

  1. jjk2

    jjk2

    i know such thing was very difficult, altho not impossible on major news on spot currency,

    i wonder if futures, such news straddles are viable ? there should be abundant amount of liquidity and minimal slippage right ?

    also, where can you find a list of the volatility expected from news release. sometimes, a news release would be rated high volatility expected, but instead it just makes the prices zig zag, and go no where. why does this happen ?
     
  2. I think "price zig zags" are to take stops out.
     
  3. Some of the "choppiness" is gamma-scalpers whose trading tends to stabilize the market and traders who are getting out of directional options trades before the implied volatility levels collapse too far.