By: Tom Gentile
on November 1st, 2022
Tomorrow the Federal Reserve is expected to announce their decision to raise short-term interest rates by 75 basis points.
They are also expected to give indication they could begin slowing down the size of their rate hikes in December.
Then, when it comes to December’s meeting there are expectations they will raise again, but by 50 basis points.
The thing to be on the lookout for is what they say about their conviction for fighting off inflation and how that is interpreted. The concern is will they continue to aggressively work to stave off inflation at the risk of triggering a recession.
How the markets react to Fed Chair Powell’s commentary following the announced rate hike is more important than the amount of the hike itself.
Here are the two lists of Unusually High Call and Put Option volume ahead of tomorrow’s Fed decision.
Morning Reports Lists
After the announcement it is encouraged to assess which sectors are bullish or bearish and then find options on securities from these lists in those sectors as a place to start deciding which to trade, if any.
App: Toms Option Tools
Market Insight articles may show images of lists of stocks meeting a variety of options parameters like Unusual Call and or Put activity or Expensive IV found on my app Toms Option Tools.
Other times I will have other charts may work to amplify my educational points.
Those options data lists, however, can be found on my app Tom’s Option Tools. Use your device to search up and download this app and get free access to the Morning Reports section of the app.
Other parts of the app are available at a premium subscription rate, but the Morning Reports Lists are yours free.
Stock and options trading has large potential rewards, but also large potential risk.
You must be aware of the risks and be willing to accept them in order to invest in the stock and options market. Do not trade with money you cannot afford to lose.
This is neither an offer to buy/sell/ or recommend a particular stock or option.
Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been actually executed, the results may have under or overcompensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with hindsight.
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