Analysis of the financial reports has become quite popular among intraday traders. The fact that in many cases we may see increased volatility on the indexes (S&P 500, Russell 2000, Nasdaq 100, DJI, and etc) has attracted futures and options traders. Simple trading strategy of placing options spreads bet before an economic report release helps to achieve desired result.
In order to properly make a call (place a trade) a trader needs several things: a) history of the index behavior during previous similar economic reports; b) expected economic data for coming reports; c: real time index charts with volume. You need to watch volume on the indexes as increase in volume would confirm volatile trading in response on report's release.
Sunday, April 10, 2011
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