In anticipation of the Fed announcement due out tomorrow at 2PM ET (press conference at 2:30PM ET) the market is pricing a one-and-done 25bp rate hike from a target range of 0.75-1.00% to 1.00-1.25%:
For future meeting dates and additional details check out the CME’s FedWatch tool powered by QuikStrike.
Using Weekly Options to Manage Short Term Risk
For event-driven exposure with lower premiums, QuikStrike supports weekly contracts – for example, the 10-year contract WY2M7 expires after the Fed announcement at 3PM ET –
Other products with weekly options include:
- Agriculture – corn, wheat, soybeans
- Energy – crude oil and nat gas
- FX – GBP/USD, EUR/USD, AUD/USD, JPY/USD, etc.
- Rates – eurodollars, 2-yrs, 5-yrs, 10-yrs, 30-yrs, and ultras
- Metals – gold, etc.