Hi Jazz: I'd be cautious attempting a one day trade in anticipation of the Fed news. Who knows what they will do for sure? And the market reaction may sell off on the news versus go up like some think, especially if we don't get that half.
I have not had time to study things today as I just got in this morning from the road traveling the past couple of days. Consequently, I'm not buying anything today.
I am continuing to play the volatility and churn closer in options (i.e. March) on those 6 stocks I've been trading for several months. Primarily JDSU, EXTR, and BEAS, but at times CIEN, BRCD and SDLI.
I've also been accumulating on dips with June call positions in JDSU, BEAS and EXTR using my regular style of buying calls 4-6 months out and holding, at times taking some profit, as opposed to churning every few days like the previous paragraph. Have built a substantial position in JDSU and BEAS calls.
If I were to do a one day options play like you asked, I'd buy JDSU or SDLI Feb calls. If I put a lot on the table, I'd also buy a few puts as insurance, just in case the bottom fell out and you couldn't get out of the calls quick enough. Understand, I'm not going to do that today, but since you specifically asked, that's what I would do if I were looking to do that one day trade you mentioned.
Good luck!
RR |
