The market’s going crazy, but what time is the Bernanke speech?
I must have heard about the Ben Bernanke speech tomorrow at Jackson Hole about 1000 times. CNBC reporters mention the Jackson Hole speech constantly, but no one has actually said the exact time of the Bernanke speech! The Jackson Hole speech time is obviously critical for anyone who want to trade this event. Find out about the exact time of the speech and other important economic data below.
Option trading around Ben Bernanke’s Speech
Short overnight option trades should definitely not be opened surrounding the speech because the market is too jittery. Often after an anticipated announcement there is a drop in volatility. With the market jitters the volatility could go haywire and this would make option trades hazardous. For any directional traders the Bernanke speech could make an interesting intraday play straight after the speech.
Apart from Bernanke’s speech at Jackson Hole, there is other important economic data that will be released. Tomorrow the GDP estimate will be released at 8.30 am before market open. According to the Yahoo Economic Calendar this is rated “B” in terms of importance to market sentiment.
Then at 9.55 am just before Bernanke’s speech, the consumer confidence report comes out. Yahoo rates this as a B- in importance.
Clearly tomorrow morning a lot of vital economic data is going to be released. This will probably have a significant impact on the market.
Normally there are great option strategies using weekly options that can be opened overnight Thursday. These option strategies take advantage of overnight time decay and the volatility plunge on expiration day. Tonight is clearly not the night to open these short trades with the risk of the economic reports and Bernanke’s Jackson Hole Speech.
Jackson Hole, Ben Bernanke and Quantitative Easing (QE)
Regarding the Jackson Hole speech, one of the anticipated possible outcomes is the announcement of another round of “quantitative easing”. What this actually means is that the Fed, led by Ben Bernanke, will create more money out of thin air. This new money will then be used to buy financial assets from banks.
The intended effect is to decrease bond yields which has a several benefits. The first is that it makes borrowing money cheaper, so this can stimulate business lending and fuel the economy. The other effect is that with lower yields investors will shift more money into the stock market and increase the general population’s wealth.
Printing money, can’t that cause inflation? Yep! The idea of quantitative easing is to prevent deflation but it can backfire and lead to excessive inflation.
Tomorrow will definitely be an interesting day. Best to stay on the sidelines overnight.
Trading earnings with options tomorrow
Regarding the profitable options earnings trades, these are usually less effected by the general market tone. Tiffany and Co (TIF) is the only potential candidate for trading earnings today. We will need to see closer to the close if this will make a good trade. Subscribers will receive their free options trade alert if it will make a good option trade.
So what time is the Bernanke Jackson Hole speech exactly?
Finally after a lot of searching I managed to find the actual timing of the Jackson hole Bernanke speech. So for all those of you that wanted to actually know the answer to: What time is Bernanke’s speech?
The answer: 10am on Friday tomorrow the 26th of August, Eastern Daylight Time.
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Where do you think the market will go? Do you have any interesting trade ideas for tomorrow? Share with us and post a comment below.