In this lesson I will discuss how you may profit from economic news, specifically the FOMC (Federal Open Market Committee) meetings. Other economic news that sometimes effects the markets are the unemployment report that is released the first Friday of every month.
I use a straddle or strangle to trade the news but only during times when price is an outlier statistically. These are strategies that profit if the market goes either up or down by a significant amount WHEN Implied volatility is LOW. I also utilize the $TLT (treasury bond E.T.F.) to trade the events. This post may even be a warning against this type of retail arbitrage but I want to make the information known all the same.
Economic Calendar Resources:
https://www.federalreserve.gov/monetarypolicy/fomccalendar.com
| 2018 FOMC Meetings | |||
| Month | Last Day | Press Conference | Minutes |
| March | 15 | Yes | 4/5 |
| May | 3 | No | 5/24 |
| June | 14 | Yes | 7/5 |
| July | 26 | No | 8/16 |
| Sept | 20 | Yes | 10/11 |
| Nov | 1 | No | 11/22 |
| Dec | 13 | Yes | 1/3 |
If you have any questions, shoot me a message through the contact page or through the free membership dashboard (located at the bottom of the page. All the best!