June Markets Leaving Options Traders Guessing

Scoreboard: Markets ended the week ending 6/12 on a sour note. Overall the week too was disappointing save for the small caps. Week ending 6/19 will be volatile as there are Eurozone and US Fed events in addition to other economic reports. Draghi starts things off and he usually has positive effect on equity markets. Variables in focus: * Small caps - They were the green shoots this weeks. They handedly out-performed the broader indices. They remain inches away from an all time high. There is the chance that they too tire and join the red party that the broader indices are looking to host. * Apple - Equity markets need its leaders and none are more important than the all mighty Apple. It has failed for a 3rd week going red and today even underperforming markets and twice as bad as Google. * Rates - They will be in focus since we have the scheduled Fed events. And it's all about expectations: 1) We all 'know' that no June hike. IF They hike rates next week markets will likely sell off. 2) If they specify that there will be no hike not even in Sep. Equity markets will rip. Those were the two extreme scenarios. 3) The more likely scenario is that they change very little in wording. This basically leaves us 'guessing.' This scenario would leave the expectations diffused. * Currency - If currencies fluctuate there will be repercussions. However, lately equity markets have been inconstant trading along side currency moves. Trading: * Booking profits; or balancing by adding opposing trades IF they are available (not pushing it). * Adding new shorter trades to continue profiting from the range bound trade. * Outside chance for Twitter to hit 40 So small debit spread on the off chance hunch is right. Warning: HEADLINES still rule (Greece and Ukraine) and we have at least two scheduled ones: First the ECB then the US Fed.