The decline in the CPI number this morning boosted the market today ahead of tomorrow’s Fed meeting and the expected 0.50 rate hike. It’s hard to tell right now what the impact of tomorrow’s decision will be for the market the rest of this week.
What we do know is that theta decay on some of our positions has slowed this week in anticipation of the Fed announcement. Looking at our SPY short options that expire tomorrow, we can roll the put out today for a reasonable credit but let’s wait until tomorrow to capture a little more theta decay before we roll our short call. Look for an alert by noon tomorrow to roll our SPY 14 Dec 405 call.
SPDR S&P 500 ETF (SPY): 401.66
TRADE ACTION: ROLL the SPY 16 Dec 376 put to the SPY 30 Dec 376 put for a net credit of around 0.95
BTC the SPY 16 Dec 376 put
STO the SPY 30 Dec 376 put
The Master Portfolio is trading 3 contracts.