Raghee’s Setup in SPY 12/17/2018
Setting Up for FOMC. Buying Jan 18 SPY 258 Calls. I want to be positioned long before the 2:00 PM ET Wednesday FOMC meeting. Powell is widely expected to raise rates while also signalling the tightening cycle is near completion during the 2:30 PM press conference. That’s why I think a quick relief rally could occur. It’s a high risk play in that I will be very right or very wrong and therefore I could enter a strap straddle (a “lopsided” bullish straddle with a 2 to 1 call to put ratio).