Straddling the Inauguration

If the stock market were to take a hellish dive on Monday, it’s not hard to imagine how the pundits will explain it: a reality check for investors who actually think Trump will be good for America.  Of course, any such weakness would have less to do with Trump than with cyclical forces that lie beyond politics and even farther beyond the understanding and imagination of those who bring us the news. Whatever the case, I would give a downturn next week better odds than a rally or a sideways muddle. Straddling the bet could be expensive, however, as we discovered during today’s tutorial session while looking for a way to do it with AMZN puts and calls. We’ll crowd-source the problem in the chat room Thursday, so be sure to drop by if you’re interested.