Big market move...which direction??

I was reading this article and found it quite interesting ( 'Bin Laden' options trading? ). It talks about unusual options activity and is trying to dispel rumors of current options activity and why they are happening. Many think that only a terrorist attack could turn a profit on this options activity, where a large market swing is needed to turn a profit. It also outlines how there were big puts in the airlines and insurance prior to 9/11, which I was unaware of. Insiders knew of an attack and made tons of money off of it. At the end they say this is a 'box spread' and is a simple interest rate trade. It may just be a coincidence that Sept 11 is between now and Sept 18, the day Bernanke is 'supposed' to cut rates...

Now from our peon point of view, I would think that the strange options activity would be due to the Fed cutting interest rates. However, we are just peons, we don't know what's really going on. If there is a rate cut, there will be a huge swing upward of confidence and an increase in the market. If we don't get one the market gets worried about a recession and pulls a lot out. However, the article talks that there needs to be a 50% change in the SPX 700 in order to turn a profit on these options...

How can this benefit us? Something is obviously up, insiders know something. I expect and want a rate cut on Sept 18 (I'm getting a mortgage, could use a lower rate coupled with high investment in the market). If we don't get one I anticipate a decrease in the market. So we can either make a lot of money or lose a lot of money. I'm going to counteract this by becoming more liquid. I want to get to a point where 20% of my investment assets are in a high yield money market account. This will give me flexibility for more buying if we get another dip, and if not I have money that I'm going to need and use to purchase my house that will sit in a high yield account.

So yes, I may sit this one out. Good luck, and trade on.