Benzinga's Options Outlook: Everyone Waiting on Fed Announcement

Markets are in chop mode as traders drift and hold the 175 line on S&P 500 (NYSE: SPY).

FOMC this week is probably going to turn trading to a sludge. Apple (NASDAQ: AAPL) earnings results were almost a non-event. Many volatility traders are slinging this back and forth.

Careful of LinkedIn (NYSE: LNKD) as well, earnings should work the stock into a new range shortly. Banks have been holding up, but not moving with markets upward.

Nasdaq stocks have been pushing the markets higher, which ultimately being high beta, cannot support a whole move in the markets without banks following suit.

Be on the lookout for any rug pull by watching the banks as an indication. Otherwise, traders are in very slow action until some catalyst hits the market.

Sell decay and volatility expected on Thursday and Friday.

Check out the video below for a recap of this week's options outlook.