Ordinarily, I like to put on what I call a bread and butter trade on a weekly basis in one of the index ETF's ( SPY
, or DIA
) or in the go-to treasury ETF
, as a "new" weekly options expiration becomes available 40-45 days out. With quite a few index and TLT
trades queued up in my portfolio that have expirations between next Friday and 35 days out, I am sitting on my hands this week with respect to my bread and butter trades, keeping my powder dry for a potential volatility
pop that makes premium selling more worthwhile. SPY IVR
is currently slightly above 35 (TOS 52-week); it's better than we've had for the several months leading up to the break of 2040, but significantly less than what we've seen the last couple of weeks during what has been labelled as a "correction." TLT's IVR
sits above 50, which isn't horrible, but higher is better. Additionally, I need to remain prepared to have to roll various sides of setups that I put on several weeks ago to later expiries in the event that the market goes crazy in response to FOMC and we see some kind of oversized movement that militates in favor of waiting for the market to settle before diving in with additional setups.