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    Late bids drive US stock markets to a record high, ten times above financial crisis lows

    by VT Markets
    /
    Sep 19, 2025
    The S&P 500 has risen by 28 points, or 0.4%, reaching a new record high of 6660. This increase demonstrates a tenfold rise since the low during the financial crisis, highlighting impressive market growth over the years. Right now, the rally shows little resistance, with strong momentum from bullish traders. This positive market trend continues, even with some worries about the economy and the Federal Reserve.

    Short Term Opportunity

    With the market at new heights, there’s a short-term opportunity to consider. Selling out-of-the-money puts on the SPX or major tech ETFs could be a smart move to earn premiums. The CBOE Volatility Index, or VIX, is currently low at 13. This means insurance costs are cheap, making the premiums for selling it more appealing. If you’re looking for a lower-risk approach, we are exploring bull call spreads. This strategy lets us benefit from potential gains while limiting losses if the market sentiment shifts. The strong August 2025 jobs report, which added 210,000 jobs, supports this ongoing upward trend. Be cautious, though. Complacency is a risk when the market feels this strong. We recall the rapid rise in late 2021 followed by a significant correction in 2022. With the VIX being low, buying protective puts is reasonably affordable, offering a cost-effective way to protect long portfolios against sudden downturns.

    Federal Reserve Concerns

    The Federal Reserve is a key concern, as they hinted last week at the possibility of raising rates again before the year ends. Although the August CPI report showed a slight dip to 3.1%, it’s not enough to claim victory over inflation. We should be prepared for more volatility around the upcoming FOMC meeting announcement in November. Create your live VT Markets account and start trading now.

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