I'll explain here and provide some examples of smart options hedges to put on from here.
The Fed reiterated a forecast for three rate cuts this year while signaling that they may tolerate inflation rates above their stated 2% target for a longer period.
.VIX 5D mountain CBOE Volatility Index, 5 days As I write this, the VIX Index is now roughly 12.8.
In the case of SPDR S & P 500 ETF Trust (SPY) options for example, the implied volatility of the April 30th expiration $500 strike puts, as measured by implied volatility, fell from nearly 13.9% before the Fed announcement, to about 13.5% following.
BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR.
Persons:
Jerome Powell, SPDR
Organizations:
Federal Reserve, Fed, Trust
Locations:
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