Trade Alert 5/1/2024

We added 1 contract of the SPY 490-460 May put spread back on last week. We will take it off today before the FOMC meeting. We anticipate a decline in volatility in the options. It is entirely possible that the Fed meeting fuels a big drop in the markets. But, more times than not, it is not the driver of extended moves that market participants fear it will be. This is a classic known/unknown. We know the date, time and most of the details of the meeting. The unknown is of course the Fed could change course. We think that is unlikely right now. Sell to close:  SPY May 17th (monthly) 490.00 strike put Buy to close: SPY May 17th (monthly) 460.00 strike put Credit:  2.18 We re-entered this position for 1.73 debit and are exiting for 2.18 credit. A profit of +0.45 per spread. However, we did take a loss when we originally traded this spread a few weeks earlier.