Leading up to the French elections a few weeks back in the Options Tribe Skype room, with the market trading in a very tight range, the topics discussed reflected overall market sentiment. Headlines were quoted extensively such as: "According to the latest IFOP poll, Macron is seen beating Le Pen in the second round 59.5% to 40.5%. Last week, the poll showed that Macron was leading 61% to 39%."…The news on the French elections was closely monitored by many traders in the chat and some also added personal comments on possible volatility index implications of the elections... “ Do you guys expect the $VIX to start rallying the closer we get to the election? It still looks very low…" commented one of our members.
One member who keeps an eye on futures contracts prices were shared that “ Futures are reflecting a very, very different picture than the pre-Brexit and pre-US election periods "...
An experienced trader mentioned that "liquidity is a very important issue when trading options. if you start trading a new vehicle, do so on a very, very small basis until you understand the liquidity of that options chain" ... and an interesting discussion later ensued about the European options market.
Another helpful topic mentioned in our chat was market orders on $RUT …"Fills in RUT have been tough. I've been trying to fill an RTT for a few days now and they're not having it." ...
Members covered a lot of ground recently in the chat, including the widened bid-ask spreads right before the FOMC meeting announcement, the components of the $RUT index and the congressional negotiations around the health care bill in the U.S. legislature.
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See you next time and trade safe !
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