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fomc day - rate pause as expected, small gains

FOMC day.

pause as expected.

market happy.

the decision
#

2pm EST: fed holds rates steady

no surprise. market expected pause.

SPX rallied 0.8%.

VIX dropped to 14.

my trades
#

pre-FOMC:

positioned with iron condors (wide, neutral).

sold into elevated IV.

post-FOMC:

IV crushed as expected.

closed condors for profit. +$1,420

the lesson (again)
#

FOMC days are predictable:

  1. IV pumps before decision
  2. decision happens
  3. IV crushes regardless of outcome

sell premium. don’t bet on direction.

works almost every time.

account update
#

pre-FOMC: $521,320

post-FOMC: $522,740

FOMC day gain: +$1,420

simple. mechanical. profitable.

rest of week
#

thursday-friday: holiday wind-down

light trading. taking profits.

christmas week next.


11:42pm wednesday. FOMC day done. rate pause as expected. SPX +0.8%, VIX → 14. sold premium before, bought back after IV crush. +$1,420. account $522,740. mechanical approach works. holiday wind-down rest of week.

-AK

Related

week 2 december - anniversary week, light trading, full focus on A.
week 2 done. mostly anniversary trip. light trading monday-wednesday. weekly numbers # starting (dec 8): $519,880 ending (dec 14): $521,320
week 1 december - steady start, anniversary trip prep
week 1 december done. steady start to the month. weekly numbers # starting (dec 1): $517,640 ending (dec 7): $519,880
december begins - year-end mode, anniversary countdown
december. final month. year-end mode activated. where we stand # account: $517,640 ytd gain: +$79,040 (+18.19%) annual pace: 19.8%
november wrap - election month, modest gains, +1.46%, ytd +18.19%
november done. election month. conservative approach. modest gains. exactly as planned. november final numbers # starting (nov 1): $510,180
week 4 november - thanksgiving week, low volume, small gains
thanksgiving week done. as expected: low volume, small gains. weekly numbers # starting (nov 17): $516,290 ending (nov 23): $517,640
week 3 november - steady progress, thanksgiving week prep
week 3 done. steady week. nothing exciting. sometimes boring is good. weekly numbers # starting (nov 10): $513,840