Lightened volumes around the Thanksgiving are likely to make this a rocky week for the markets, traders warn. Given the high potential for volatility, many plan to adopt special strategies in order to protect gains and avoid losses around the holiday.
"I'm looking for a sloppy, choppy week," said Rich Ilczyszyn of iiTrader. "As a professional trader, I lightened up my positions on Friday, and went into primarily cash with a few small outliers."
Ilczysyzn is especially wary about the back half of the week.
"On Wednesday, I'm going to be out of the market and flat by 10 a.m.," said the Chicago-based Ilczyszyn. "A rule here on the floor is, you get out early, capitalize on volatility, and the rest of the day, the market just wanes off. And really, Friday could be a wildcard. You'll see some wild swings on Friday, so be careful."
While Joseph Greco doesn't go so far as to predict volatility, he'll certainly be prepared for it.
"It's not necessarily going to be volatile—that's a great crystal ball question," the managing director of trading at Meridian Equity Partners told CNBC.com. "But as always is the case when faced with lighter trading volumes due to holidays, it's best to have stops in place, and hedge yourself out by using an options strategy against your portfolio."