A Directional Play for FOMC
Update: 2025-09-16
Description
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.
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.
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