This is a thread about "event-driven" trading. Some definitions: "BFD" = "Big F^^king Deal." Not to be confused with "BTFD", which means "Buy the F^^king Dip." "NBD" = "No Big Deal." And so on....
I am not referring to "news trading", per se. Although some news releases can be BFD's. So we can consider "news trades" on a case-by-case basis.
I am talking about setting up trades in anticipation of large market moves that may occur around major, scheduled events like elections, decisions of certain governing bodies or trade organizations, etc. The best of these events may be considered "binary events." That is to say, the market will move one way if the event results in one outcome and it will move the other way if the opposite outcome occurs. The best opportunities also are associated with "scheduled" events - events that will occur at a known exact or very nearly exact time, such that trades can be planned around the event well in advance. "Around the event" means both sides of the event - the run-up, and the aftermath.
I hope to share actual trade ideas with other traders who trade this way. I am using options to trade these BFD events. I won't discriminate against any other means of event trading. I am as much interested in your rationale for trading specific events and how you approach your trade set-ups as I am in the specific details about the instruments you trade.
Following are a few examples from recent history.
I am not referring to "news trading", per se. Although some news releases can be BFD's. So we can consider "news trades" on a case-by-case basis.
I am talking about setting up trades in anticipation of large market moves that may occur around major, scheduled events like elections, decisions of certain governing bodies or trade organizations, etc. The best of these events may be considered "binary events." That is to say, the market will move one way if the event results in one outcome and it will move the other way if the opposite outcome occurs. The best opportunities also are associated with "scheduled" events - events that will occur at a known exact or very nearly exact time, such that trades can be planned around the event well in advance. "Around the event" means both sides of the event - the run-up, and the aftermath.
I hope to share actual trade ideas with other traders who trade this way. I am using options to trade these BFD events. I won't discriminate against any other means of event trading. I am as much interested in your rationale for trading specific events and how you approach your trade set-ups as I am in the specific details about the instruments you trade.
Following are a few examples from recent history.
"If The Fool persists in his Folly he will become wise." - William Blake