SPX at 1508. Look for a short term top in relation to the FED-meeting. I am completely hedged now with beta adjusted 0% net long positions (hedged long and short equity positions as well as equities vs commodities). Looking to gradually increase net short in the coming 3 days both in time and space (index level 1410-1415). This is not for more than 10-20 handles downside target. Also not sure how much higher we can go before a larger downturn as well. Not willing to risk net long at these levels and above.
My strategy will still be to sell volatility on any day spike and collect some premium. Writing covered calls is an excellent strategy in this environment where the market is stretched to the upside but still has limited downside. I would also write some puts as we go down 10-20 handels to best take full advantage of the consolidation phase.
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