These are the days of pitifully low IV ranks. With the VIX hovering just above 13, it’s no wonder most symbols have low IV. The S&P 500 keeps up its rally, however feeble, to reach its highest level for 2019, and the highest price since last October. Early October, at that. Low VIX = high bullish confidence. But that confidence in the market could belie some of the weakness should a storm form around this week’s FOMC meeting. If you think the pot odds of this market favor the downside, you might consider a bearish strategy in the SPY. The long put vertical that’s short the 282 put and long the 284 put in the April weekly expiration with 38 DTE is a bearish strategy that has a 62% prob of making 50% of its max profit before expiry and that generates $.33 of positive daily theta.
Opened 19/03/19 for $.82 debit
Closed 19/03/28 for $.96 credit