How to make money from the Fed’s interest-rate decision?

Discussion in 'Trading' started by Lloyd W. Coutee, Sep 16, 2015.

  1. Do you have any idea? I will do the opposite of what most investors do immediately after the decision is announced..
     
  2. It's not a matter how "how to make money from the Fed's decision". It's more like "how to not lose money from tomorrow's FOMC trigger".

    The trend is going to go where it's going to go, regardless of what the Fed does. The only people that play tomorrow are the day traders and the algos. A lot of day traders get killed because the market usually spikes in both directions after a trigger.

    http://investingtrack.com/our-guess-the-fed-will-not-raise-interest-rates-in-2015/
     
    jimmiebarton and Lloyd W. Coutee like this.
  3. if you have no clue what stance to take maybe you should just stand on the side line. It will over the long-term save you a lot of money.

     
    cjbuckley4 likes this.
  4. The thread title should be:

    How to gamble my money from the Fed’s interest-rate decision?
     
    Lloyd W. Coutee and wwatson1 like this.

  5. Can you bet binary, that it's not a non-event? haha
     
    Lloyd W. Coutee likes this.
  6. newwurldmn

    newwurldmn

    Sell Gamma. It's priced at 27 vol.
     
    Lloyd W. Coutee likes this.
  7. jsp326

    jsp326

    I agree with the others. However, I will say this looks like a classic "buy the rumor, sell the news" event. Stocks have risen substantially the last 2 days, expecting the Fed to hold rates steady. I think they will, with the caveat that a Dec. hike is quite possible. From there, I'm not sure that stocks will rally. It appears they've already priced in the news.

    Having said that, don't trade based on this alone. Stay out unless you really have a plan and an exit strategy.
     
    Lloyd W. Coutee likes this.
  8. There will be a move tomorrow...I might consider a small gamma position... Either a call cal or a fly in spx
     
    Lloyd W. Coutee likes this.
  9. Everyone with the courage to risk capital in the stock market is making money today. Those that wait for the FED to give them unjustified CD rates are not.
     
    #10     Sep 16, 2015
    Lloyd W. Coutee likes this.