First off we have an inside outside bar formation on the daily what does that mean I don’t know but it sounds cool lol. Seriously we are in for a huge move to the down side the only reason this rally started was the rumor of the feds slowing down, tomorrow will be a different story when they announce 75bps hike and stay hawkish in their language. How to play it. First off the IV will be high for options so be ready for that second have your personal profit margin in mind be real with yourself. Set the buy order as price will be moving fast I recommend using money you are willing to lose 100% if you put in a stop loss it will trigger quickly, so buy order and sell orders fast you can make 100% in seconds or minutes. Fade the first candle on the 3 minute chart if it’s red buy calls green buy puts. Right at 11 Pacific time the whipsawing starts for about 5 to 10 minutes but the real action starts at 11:30 when Powell talks and robots are picking up key words this is when the money is made. I normally buy @ 10:50 if I have an idea which way to go then again at 11:20. During the day I’m expecting chop all day until 11 so don’t buy early theta will crush your premiums. If this is your first FOMC day just watch the action and learn. If we rally up or down Thursday is normally the opposite so there’s action on that to at the end of the day for cheap premiums. Please have a plan and stick to it this is not for rookies Let me know if you have any questions below
As always trade what’s in front of you good luck
As always trade what’s in front of you good luck
