Originally posted on 07/01/2018:
I think there is a ton to make on straddles on both mid term and the general. It's a little early because the time premium.
BUT. Can you imagine the turmoil if a blue wave is real and tax cuts are rolled back?
Imagine what would happen if Trump was actually defeated in the general and a wave of socialists rolled in? You could see a 10,000 point drop or more.
So at the money Call/Put straddle would cost $12 for the Call and $10.58 for the Put both at the 271 strike on the SPY. These are December 2018 options.
There is no way this trade losses. None at all. The same trade will be available on the general election too.