How to Profit From a Market Swing

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Sept. 17 (Bloomberg) -- IUR Capital Managing Director Gareth Rya discusses his options lay for the markets. He speaks on Bloomberg Television's "Market Makers." (Source: Bloomberg)

Tell us what you would buy?

With regard to to the s&p, in the first three months, we have been buying dips.

We have had a very ugly august grade we have been very impressed with the first couple of weeks in september and the rally we saw going into tomorrow's meeting.

What we are going to look at is the strategy on the spider etf and move either way to the low side or highside on the s&p great tell us about the timing on this.

It would expire by the 20th, correct?


We are not interested in taking something very long-term.

We are focused on profiting from a movie either way on the s&p 500. so we are looking at the straddle, the 170 spider etf.

It will pay about $2.30. we need a move of more than two percent to make this work for us both tomorrow evening after the announcement comes out and also thursday and friday.

Why are you confident the fed announcement will generate the kinds of swings you're talking about?

Fax -- there will be movement.

We are certain of that.

I will be surprised if this becomes a dead fish for the s&p 500, meaning no reaction or perhaps a few points swing either way.

We are looking for all asset classes to move, not just equities.

Look for the bond market to move as well.

The ten-year and the euro- dollar.

At least a 1% move on the announcement tomorrow afternoon and the press conference after that.

What kind of movement would you anticipate in the commodities?

You mentioned at treasuries will see a nice move but commodities are wrapped up in this as well.

Obviously gold is something we focus on a lot for our clients.

We like to use the etf pair and use options strategy that let us off at from a move one way or another.

Any move to the low side and gold, we will profit from that.

This text has been automatically generated. It may not be 100% accurate.


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