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Scalping
The FOMC-Day 0DTE Playbook: Trading the 2pm Whipsaw (or Not)
The Fed decision drops at 2pm and the tape convulses. The traders who do well on FOMC days mostly do it by not trading the first ten minutes.
NoVo Options Trading · 2026
An FOMC day has a distinct shape: a coiled, defensive morning, then a violent repricing at 2pm as the statement and press conference reset the entire options book. The 0DTE playbook is built around respecting that repricing rather than gambling on it.
Before 2pm: don't trust the map
The pre-announcement tape is usually pinned and low-conviction, and the levels are provisional — built on positioning that's about to change. IV is elevated, so long premium is expensive. Trade small or not at all into 2pm; the morning's levels are placeholders.
At 2pm: stand aside the spike
The immediate reaction is often a two-way whipsaw — a spike one way, then a violent reversal — as the market digests the news and the flip jumps to a new level. Trading that first spike is a coin flip on a fast, wide market. The disciplined move is to wait: let the whipsaw play out and the fresh structure print.
The Fed spike isn't a signal — it's the market finding out. Trade the structure that forms after, not the convulsion itself.
After the dust settles: trade the new map
Once the initial volatility calms (often 15–30 minutes later), a new dealer map prints — a fresh flip, fresh walls, a clearer regime. That's the tradeable structure. Watch also for the vol-crush and vanna grind that frequently follows. Trade the post-Fed structure with your normal level playbooks. NoVo re-maps the levels live, so the post-2pm structure is drawn for you rather than reconstructed by hand in a fast tape.
More on this: Jackson Hole Week: Trading SPY Around the Fed's Big Speech
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NoVo is a software tool for market analysis and for executing trades you initiate, not financial advice. This article is general education, not investment advice. Options trading involves substantial risk of loss, up to and including your entire capital. NoVo makes no guarantee of profit, win rate, or performance, and past results do not predict future outcomes. You are responsible for your own broker account, configuration, and trading decisions.