My usual winning formula for fed days:
- Short VXX 30-60 minutes before IT speaks, (usually always 1pm Central time)
- Sell before the end of the day at an opportune time.
VXX almost always drops because of the "clarity" that IT gives in whatever it happens to say. That's the narrative anyway. Probably just good old-fashioned manipulation.
** Sometimes I parlay any gains into another strategy. If it looks like dollar is getting beaten down after a Fed speak day, it is likely going to be down more the next morning from overnight follow-through.
Does anyone else have a "strategy" for Fed days?
My strategy for the next few days would be to play both sides, a strangle. There is a chance IT leaves things alone, also a chance they go .50. We have the POS. Firing of Mueller and March 24 Yuan Petro in the wings. Very interesting times