All Eyes on Fed

All Eyes on Fed

1:40pm (EST) We are 20 minutes away from the Fed’s statements on interest rates. We expect Big Ben to leave the key rate unchanged (at a range of zero to 0.25%), but you never know with these things. The last four times we have gotten an announcement the market has rallied 1%-4%. Currently, the Dow is up 51 points to 8,374 so are we going to have an explosive move once we get an announcement? There is a way to play this but we could get some really choppy action and you will have to be nimble. The S&P 500 is the most widely traded index and you could play the June 925 calls (JXDFZ, $1.40, up $0.40). Make sure you use limit orders and confirm market direction if you do the trade. I will not be able to update the blog until tonight because I will be watching the announcement and maybe do my own trading. Rick Rouse Rick@TheOptionInvestor.com]]>

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