Uncertainty about the election makes this a time for caution. The SPY term structure chart below shows that options expiring after the election have much higher volatility than those that expire before election day.
The options expiring before the election are too cheap to consider selling strategies. Options expiring after the election are expensive, but in this case, uncertainty is so high that volatility expectations may be warranted. We recommend caution with this week's outlook.
Here are the scheduled news/events this week that have potential to move the market.
| Monday, Oct 26th | |
| 8:30 AM | Chicago Fed National Activity Index |
| 10:00 AM | New Home Sales |
| 10:30 AM | Dallas Fed Manufacturing Survey |
| Tuesday, Oct 27th | |
| 8:30 AM | Durable Goods Orders |
| 8:55 AM | Redbook |
| 9:00 AM | Case-Schiller House Price Index |
| 9:00 AM | FHFA House Price Index |
| 10:00 AM | Consumer Confidence |
| 10:00 AM | Richmond Fed Manufacturing Index |
| Wednesday, Oct 28th | |
| 7:00 AM | MBA Mortgage Applications |
| 8:30 AM | International Trade In Goods (Advance) |
| 8:30 AM | Retail Inventories (Advance) |
| 8:30 AM | Wholesale Inventories (Advance) |
| 10:00 AM | State Street Investor Confidence Index |
| 10:30 AM | EIA Petroleum Status Report |
| 11:00 AM | Survey of Business Uncertainty |
| Thursday, Oct 29th | |
| 8:30 AM | Jobless Claims |
| 8:30 AM | GDP |
| 10:00 AM | Pending Home Sales Index |
| 10:30 AM | EIA Natural Gas Report |
| 4:30 PM | Fed Balance Sheet |
| 4:30 PM | Money Supply |
| Friday, Oct 30th | |
| 8:30 AM | Personal Income & Outlays |
| 8:30 AM | Employment Cost Index |
| 9:45 AM | Chicago PMI |
| 10:00 AM | Consumer Sentiment |