In today's From Theory to Practice, Dr. Jim notes that Fed Funds futures currently price a 96% probability of a 25-basis-point cut and 4% chance of a 50-basis-point reduction. Of course, the market's reaction remains uncertain regardless of outcome, as the anticipated 25-point cut has largely been priced in.

To play the FOMC meeting, Dr. Jim initiated a bearish SPY put spread (buying 663/selling 657) for $3.03, anticipating downside potential following the Fed decision, despite acknowledging his uncanny ability to light stacks of cash on fire for binary events.