Will the Fed Make a Surprise Announcement?
For the most part, Fed Chair Powell has pretty much forecast what he and the Fed are likely to do this year based on all their existing data on the economy.
Powell, in early mid-January, basically said they want to normalize policy. To do that they are looking to end their asset purchase program in March. They also forecast they will be raining interest rates in the coming year. And last, he says they will likely start to let the Fed balance sheet run off.
We are Waiting for the Fed Announcement Before Taking New Options Action
It is to be seen if rising rates later in the year means tomorrow or not. If so, it could be just a quarter of a basis point, it doesn’t seem likely it would be 50-basis points. But who knows?
As long as there isn’t any announcements or dialogue different from the expectations he already laid out the announcement shouldn’t be a surprise and we will see if this really minor bounce in the markets have any upside follow through for bullish option opportunities. Otherwise, start looking at bearish options setups.
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.