Well, we had our Fed announcement—and, as expected, rates were held steady. What wasn’t expected? Powell basically shrugged when asked what’s next. The uncertainty over tariffs—when they’ll hit, how big they’ll be and what they’ll affect—makes future forecasts tricky, and Powell made that clear.
But here’s the interesting part for us options traders: Even with all the ambiguity, the VIX pulled back a bit after the announcement but still closed above 23. That’s historically high, which means premiums are still juicy—even though the market didn’t really move on the news.
So what does that mean? For covered call sellers, cash-secured put traders and those running credit spreads—it’s still a solid environment to be active. The market isn’t swinging wildly, but implied volatility is keeping option prices inflated.
I’ve said it before: This remains one of the best markets for option sellers I’ve seen in my 30-year career. Pick your spots, follow your plan, and let the high IV work for you.
#OptionsTrading #CoveredCalls #MarketVolatility #CashSecuredPuts
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