Bean Vol trade
Going into the report tomorrow volatility is Jacked. Not just the report but several factors. 1st the report 2nd unemployment 3rd and most influential in my opinion is the rumor that China will take tariffs off over the weekend. All factors lead to HIGH volatility. If the RUMOR does materialize over the weekend Monday could see big moves. Options that exp tomorrow price in about 5.4 move. Options that exp next Friday price in about 11.4 move. One could take advantage of this by selling 910/890 strangle that exp tomorrow buy the 910/890 strangle that exp on next Friday for debit 4.5. The reason one would want to do this is for two reasons. 1st to play the volatility collapse between the two strangles. 2nd and could be explosive is to play the expected range of front options and have and open ended strangle over the weekend with playing the rumor for a big Monday move.
Protect yourself at all times