Straddling news events

#1

I’ve been trying out the straddle on very important news events but I only manage to make a few bucks on one side and not enough to cover for both. I figured with major news events the there would be enough volatility. Am I doing something wrong? Any tips would be appreciated. Thanks.

#2

You’ll need to post which news events and what your setups were. That way we can tell if the news figures came in at expectations and also if your risk was too much for the expected movement.

#3

It was this mornings unemployment numbers. I opened a call and a put on usd/cad for a total of $60. I believe the strike distance from the two positions were 30. Maybe I left to much room.

#4

I don’t think the unemployment report can give you enough movement to cover that risk and make a profit. If risk was equal on both sides you would need 90 ticks of movement to make a 1:1 profit. The news calender marks unemployment as a ‘be aware event’. There are usually only a few events each month marked as straddle potential.

#5

Yes the News Calendar gives you info on what trade you should be looking to take as well as expected / historical moves for that news event release