tastylive: Last Call

SPX trades closed successfully, with call volume significantly outpacing puts across major tech names. Frank noted Intel's 321,000 calls versus 145,000 puts, with most calls being bought at or above the offer price. The hosts implemented several strategic trades, including a buffer in SYM ($69 stock) that takes advantage of call skew while offering $1,100 profit potential versus $800 for a traditional put sale. They also closed a profitable MasterCard/Visa pairs trade and an FCX Jade Lizard at 31% profit. To balance their predominantly bullish portfolio, they added a SPY "pool medic" calendar spread and UVXY zebra position as downside protection. The hosts noted their portfolio needed more bearish exposure to protect against potential market reversals.

In today's From Theory to Practice, Jim Schultz discussed the positive side of theta in options trading, emphasizing how option sellers benefit from time decay. When selling options, positive theta creates natural downward pressure on extrinsic value as expiration approaches, improving probability of profit for out-of-the-money positions.

S&P futures surged 45 handles, extending gains that began after yesterday's FOMC meeting. Nasdaq jumped 260+ points while Russell led indices with a 24-point gain. VIX showed minimal movement despite the rally, confirming market strength signaled yesterday when volatility declined even during market pullbacks. Tech stocks drove the advance with semiconductors showing exceptional strength. Intel jumped $7, NVIDIA gained $5, and AMAT rose $10, pushing the semiconductor index (SSMH) up $9. During the Confirm and Send segment, Tony and Nick addressed position management thresholds (60-70 deltas), premium selling in low IVR environments, triple witching implications, and retail order priority over institutional orders at the same price point.

What did the markets really think after Fed rate cut arrived as expected? Price action across US stocks, bonds, gold, and the US dollar seem to hint at what's next. tastylive's Head of Global Macro Ilya Spivak breaks down the policy update from the Federal Open Market Committee (FOMC) and considers why traders' response may be signaling that a major inflection point across key markets has arrived.