A major geopolitical address is scheduled, which historically can cause significant market volatility. Buying cheap out-of-the-money (OTM) puts and calls (a straddle/strangle) is a direct bet on a large price swing in either direction following the news. The trade is a volatility play, not a directional bet, capitalizing on the uncertainty of the announcement's content. The announcement could be a non-event, resulting in minimal price movement and rapid volatility crush. Implied volatility may already be elevated, making the options expensive.
SPY
HIGH
Apr 01, 00:23
Key Points
['Bet on volatility spike', 'Straddle/strangle strategy', 'Event-driven, immediate expiry', 'High risk of total loss', 'Geopolitical headline risk']
April 01, 2026 at 00:23