Fed and The Markets

[optionpundit]

Here is my gut feel from the market action today:

BUY IN ANTICIPATION AND SELL ON NEWS

Let's see what happens when Uncle Ben offers the candy to The Wall Street.

Profitable trading, OP

[optionpundit]

Alright, so it did fall from 2:15 till 2:30pm but to rise all the way back up and even higher (Intraday trades are not easy these days and one needs to be very quick in decision making).

Here is how I played the whole speculative scenario:
1) I bot VIX Puts a day ago due to my "gut feel" that it will be fall because markets will rise as it already anticipates big cut. VIX was down at open and I sold my VIX for profit
2) Then I bot VIX calls before the FOMC announcement due to "gut feel" that it will now rise after FOMC announcement.
3) I also purchased SDS 66 March calls (Ultrashort S&P500 shares) before FOMC announcement as I saw volume increasing.

I liquidated both VIX and SDS calls at the very first reversal candle and booking my 37.9% profit on SDS and break-even on VIX calls.

Profitable trading, OP

[davidtsc27]

Congrat OP!!!

[opajduk]

I also played the VIX, but I bought the puts on Firday (I didn't expect BSC and raised volatility on Monday) and sold it today for 33% easy profits

Initially I bought Apr puts with the intention on holding them a bit longer, but yesterday I changed my mind; however, I decided to wait one more day to see if we get another dip of volatility.