Before the Budget madness, let’s take a quick look at option strategies. Strangely, implied volatility is VERY low, with the VIX at 18.18 (election time saw it go up to 40).
August Options Strangle/Straddle?
Look at the implied volatility curve for August options: (Note: Not July, but August!)
At 7500, we see the volatility is lower on the puts - substantially so, at 15%. This is even after two down days, when the IVs should have shot up!
15% is . . .