in-the-money (delta of 70) call options

A run up into the elections makes sense, and I would not be surprised to see a gap up the day after the elections (assuming a strong win for the Republicans). That is the news. By noon that day, it will be time to sell the news.



My plan for the rest of this week and into the following week leading into the elections, is to buy in-the-money (delta of 70) call options on dips to support levels on key stocks such as Baidu.com(BIDU_) and priceline.com(PCLN_) as well as the SPDR S&P 500 ETF(SPY_). All three are strong and currently are not showing signs of fatigue. BIDU has key resistance at $114.00. PCLN is on a tear and does not have much extension resistance until the $380.00 level. And SPY is wide open into the $120.00-$120.30 level. I am looking for the markets to back and fill into the elections, and then post-election surge potentially into these key levels. At this point, on the day after elections, I would dump my call options and then reverse and buy in-the-money (delta of 70) puts.