Japanese markets are closed today for a holiday. In China, economic activity data for August 2025 is expected soon, with predictions showing only minor changes from July due to low local demand and export issues. Over the weekend, there were trade talks between the US and China, and updates are expected shortly. Also, indicative foreign exchange (FX) prices for September 15, 2025, have been released, with the Federal Reserve planning a 0.25% interest rate cut. Market trends suggest even deeper easing might happen in 2026.

S&P 500 Futures Analysis

The current analysis of S&P 500 Futures shows a rejection at 6600, signaling concentrated options activity. On the other hand, cryptocurrencies like MYX, WLD, and CRO are showing strong gains, indicating that traders are looking for volatility and possible profits. Foreign exchange trading comes with high risks and the potential for significant losses. InvestingLive shares economic data but does not endorse outside opinions. They remind users about the risks involved in investing and trading. With the Federal Reserve likely to cut rates by 25 basis points this week, this change seems already reflected in equity markets, which are currently near their highs. We remember a similar scenario during the 2019 easing cycle when the market movement was mainly influenced by the Fed’s forward guidance, not just the first rate cut. Thus, any indication from the dot plot suggesting fewer rate cuts for 2026 could lead S&P 500 futures to strongly reject the 6600 resistance level.

Economic Data and Currency Market Impacts

We are preparing for Monday’s release of Chinese industrial production and retail sales data, which is expected to show minimal improvement, indicating ongoing economic struggles. This ongoing weakness from China, which used to make up over 30% of Australia’s exports, continues to hurt the Australian dollar. A disappointing report could push the AUD/USD exchange rate below the 0.6600 support level soon. Ongoing US-China trade talks and new tariff threats against the EU create a lot of uncertainty, often resulting in increased market volatility. Looking back at the trade disputes from 2018 to 2019, the VIX index rose by over 40% following unexpected tariff announcements. Buying VIX call options may be a cost-effective way to hedge against potential losses in your portfolio due to any sudden geopolitical events this week. In the currency market, the possibility of new US tariffs is putting pressure on the EUR/USD pair. Even with the Fed cutting rates, the interest rate gap will likely favor the dollar, as the European Central Bank faces its own economic issues. We see this as a chance for traders to consider purchasing puts on the EUR/USD, betting on a return to the lows we saw earlier in 2025. Create your live VT Markets account and start trading now.

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Trade talks between the US and China happened this past weekend in Madrid. The meeting is over, but details haven’t been shared yet. An update about the talks was posted on TikTok, and we expect more insights soon.

Market Expectations

With the talks now finished and no news released, we can expect market volatility to increase significantly. This week, the CBOE Volatility Index (VIX) rose to 19 in anticipation. Derivative markets are also predicting wider price swings in the weeks ahead. Due to this uncertainty, traders should think about buying options to protect their investments or speculate on big market movements. We’ve seen similar situations before, especially during the trade negotiations between 2018 and 2020. Back then, markets reacted strongly to headlines and rumors, often punishing those who made large bets before any official news. History shows that even good news can lead to sell-offs as traders assess the details, making quick bullish moves risky. Traders should focus on options for sector-specific ETFs that react strongly to US-China relations, like those covering semiconductors and Chinese tech stocks. For instance, the implied volatility for options on the FXI, the China large-cap ETF, is currently high, indicating that traders are preparing for a big move. Strategies like straddles or strangles could be better bets, allowing traders to profit from sharp price changes in either direction instead of guessing the outcome.

Options Trading Considerations

The broader economic situation adds complexity, as this isn’t just about trade talks. The latest US inflation report for August 2025 showed a slightly higher rate of 3.1%, which limits the Federal Reserve’s ability to support the market if news from the talks is negative. Meanwhile, China’s recent industrial production grew only 3.5%, which is weaker than expected, signaling that they also hope for a positive outcome from the talks. For now, the smart approach is to use derivatives to manage risk instead of making outright bets. This means favoring long premium strategies where the maximum loss is clear from the start. The immediate focus should be on getting through the initial news release, which could happen anytime and likely outside of market hours. Create your live VT Markets account and start trading now.

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Market liquidity is low on Monday mornings and stabilizes as more Asian markets open. Current rates show only slight changes from late Friday, with EUR/USD at 1.1735 and USD/JPY at 147.78, among others. Key events to watch include possible US tariffs on EU goods, which could impact EUR/USD rates. The US and China have just held trade talks, and updates are expected. We also provide important analyses and forecasts for S&P 500 futures and major economic events this week.

Risk Warnings

Risk warnings highlight the high-risk nature of foreign exchange trading. Using leverage can increase losses, so it’s important for traders to carefully evaluate their goals, experience, and risk tolerance. It’s recommended not to use money that one cannot afford to lose. InvestingLive suggests consulting independent financial or tax advisors if needed. They clarify that their materials and links are for informational and educational use only and are not a substitute for personalized investment advice. InvestingLive may receive compensation from advertisers based on user interactions. Caution is necessary due to thin liquidity early in the week, as prices can fluctuate wildly. The proposed 15-20% tariff on all EU goods is a significant risk that could lower EUR/USD rates and increase volatility. Traders can hedge this risk by considering put options on the Euro, especially since recent Q2 2025 data showed EU exports to the US are at a five-year high, intensifying the threat.

Central Bank Meetings

An important week of central bank meetings is ahead, including the FOMC, BoE, and BoJ. The latest US Core PCE inflation data from July 2025 remains above 3%, leading the market to expect a hawkish stance from the Fed. This could result in increased activity in derivatives tied to interest rates, such as SOFR futures, as traders prepare for the Fed’s announcement. In equity markets, the S&P 500’s inability to surpass the 6600 mark suggests a possible ceiling. We have noticed a significant 25% rise in open interest for SPX put options with a 6500 strike for October 2025, indicating that many anticipate a market pullback. This situation reminds us of the sharp sell-off that occurred in late 2023 when similar resistance levels faced strong selling. The recent US-China trade talks introduce more uncertainty, especially for commodity currencies like the Australian Dollar. Any negative news could push AUD/USD below its recent support level of 0.6600. Traders are utilizing option straddles to prepare for a significant move in this pair, as any outcome from the talks is likely to prompt a swift reaction. Create your live VT Markets account and start trading now.

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S&P 500 futures hit a snag at 6600 due to negative order flow and SPX options pinning below 6590–6600. While there was strength earlier in the week, it faded by Friday’s close. Although futures reached 6600, sellers stepped in to stop any further increase. From September 9–11, bullish trends were evident as value areas and VWAP rose each day. However, by Thursday, the 6600 level became a barrier, leading sellers to take control by Friday. This left prices fluctuating between 6600 and 6575, closing near the session’s low, which indicates potential weakness unless 6600 is quickly regained.

Options Market Activity

In the options market, the most active trades were for SPX calls at 6590, 6595, and 6600, with the index closing at 6,584.28. This pinning often happens around busy trading points. Therefore, the 6590–6600 range is a critical resistance zone that bulls must break. The VIX index, which closed at 14.75, shows calm in the market, but futures point to worry about upcoming volatility. September contracts are at 15.65, while early 2026 contracts hover around 21.5, suggesting traders are cautious about the long term. Key levels to watch include: – Resistance: 6595–6600 – Support: 6574–6579 A move above 6600 targets 6625 and 6640, while dropping below 6575 risks falling to 6540 and 6520. An OrderFlow Intel Score of –6.5 indicates seller strength. A rise above 6600 is crucial for a positive outlook. The S&P 500’s struggle to break 6600 signals caution for the upcoming weeks. Last week’s strong momentum vanished on Friday, as significant selling pressure emerged, pushing the market down from this crucial level. This shift means that until bulls can reclaim 6600 with confidence, a defensive or bearish stance is wise. This market hesitation lines up with recent economic data. The Consumer Price Index (CPI) report for August 2025 came in at 3.4%, slightly above the expected 3.2%. With the Federal Reserve’s interest rate decision coming up on September 24, this higher inflation reading adds uncertainty about another potential rate hike. Thus, the rejection at 6600 is backed by fundamental factors, not just technical ones.

Trader Strategies and Market Outlook

In response, traders are preparing for a potential drop by buying put options with strike prices under the 6575 support level. Another favored strategy is selling call credit spreads with the short strike at or above 6600, which profits if the market stays under that ceiling. These trades directly bet on the continuation of the late Friday selling pressure. The VIX futures curve suggests that while the market appears calm now, larger players are hedging against possible future issues. The spot VIX is low at 14.75, but early 2026 contracts trade around 21.5, indicating increased demand for long-term protection. This hints that purchasing cheaper, longer-dated puts or VIX call options could be an effective way to safeguard a portfolio against a potential downturn later this year. This situation feels different from the strong market rally seen in late 2023 when there was confidence that the Fed would stop raising rates. After a strong performance throughout 2025, the market now shows signs of weariness as inflation concerns resurface. Therefore, we should approach this rejection at 6600 with more caution than usual. However, if buyers can push S&P 500 futures above 6600 with strong volume, the bearish outlook would change immediately. In that case, we would quickly adjust our strategy, potentially by buying calls aiming for the 6625 and 6640 levels. Create your live VT Markets account and start trading now.

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Next week, several central banks will hold meetings and release important economic data. Key central banks like the FOMC, BoE, BoJ, and BoC will announce their monetary policy decisions. The US Retail Sales report and various economic data from the UK will also be closely watched. Additionally, China will release its August activity data, which will offer insights into retail sales, industrial production, and investments, with some areas expected to show slight recovery.

Monetary Policy Predictions

The UK employment report is likely to show the unemployment rate steady at 4.7%. In the US, retail sales for August are expected to rise by 0.3%, while Canadian inflation data may affect expectations for further rate cuts by the BoC. The FOMC is anticipated to cut rates by 25 basis points due to a weakening labor market. Similarly, the BoC might cut rates in response to recent economic data suggesting slower growth. In the UK, inflation data is expected to show a small increase in core CPI, while overall services are likely to stay stable. New Zealand’s Q2 GDP could show a contraction. The BoE is predicted to keep interest rates at 4%, focusing on persistent inflation. Norges Bank is expected to cut rates by 25 basis points. The BoJ is likely to maintain current interest rates, and Japanese CPI data, released on the same day, is expected to show a slight decline in headline inflation. UK retail sales are forecasted to see a small rise in August. Next week will be heavily influenced by central bank decisions, increasing event risk across major currency pairs and indices. The main events include policy announcements from the FOMC, BoE, and BoJ. Traders in derivatives should focus on volatility and potential changes in forward guidance. The week will begin with Chinese activity data for August, which will help set the tone for global growth sentiment. Recent data has shown a continued decline in the property sector, with new home prices falling for twelve straight months as of August 2025. Any disappointing industrial production or retail sales figures could pressure commodity-linked currencies and affect risk assets.

Key Events and Market Reactions

The most significant event is the FOMC meeting on Wednesday, where a 25-basis-point rate cut is expected. Our focus is not just on the cut, but also on the updated economic projections and the dot plot, as the market anticipates about 70 basis points of total cuts by year-end. Volatility in the options market, indicated by the VIX index, which has been hovering around a low 14, is likely to increase before the announcement. We expect the updated dot plot to suggest a more aggressive easing path through the rest of 2025 and into 2026. This could weaken the dollar and boost equity indices. We are considering short-dated call options on the S&P 500 to prepare for a dovish surprise from the Fed’s forward guidance. In the UK, timing is crucial, with August inflation data due on Wednesday, followed by the BoE decision on Thursday. Since headline CPI is expected to rise to 3.9%, strong inflation data could delay market expectations for the next rate cut, which is currently not anticipated until early 2026. This could provide short-term support for the pound against the dollar and the euro. The BoE is widely expected to maintain its rate at 4%, so our attention will be on the voting split and any changes in guidance. The last meeting in August 2025 had a surprising 5-4 vote to cut rates, indicating a divided committee. A similar split or a more hawkish tone could lead to rising yields on UK gilts as traders adjust their expectations for future easing. The Bank of Japan’s announcement on Friday presents a significant risk. While no policy change is expected, conflicting reports about the timing of the next rate hike have created uncertainty, with USD/JPY recently trading above the key 150 level. This political uncertainty, following the prime minister’s resignation, adds complexity for the BoJ. To prepare for surprises, low-cost options strategies could be useful. We see value in buying out-of-the-money USD/JPY puts to protect against any hawkish comments that could sharply strengthen the yen. The main strategy is to position for a possible reassessment of the BoJ’s policy normalization path. Other data points, like US Retail Sales on Tuesday, will be important for assessing consumer health before the Fed’s decision. The Bank of Canada is also expected to cut rates on Wednesday, a move largely anticipated by the market. This aligns with the broader global trend of central bank easing, supporting our core strategies focused on major policy meetings. Create your live VT Markets account and start trading now.

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The US dollar finished the day mostly stronger, gaining against the New Zealand dollar (+0.30%) and the Japanese yen (+0.26%). Most major currencies changed slightly, moving within 0.11% of their previous levels. The University of Michigan consumer sentiment dropped below expectations to 55.4, which later weakened the dollar. Even with this drop in sentiment, US bond yields increased, with the 2-year yield rising 3.3 basis points to 3.561% and the 10-year yield at 4.066%. Treasury auctions showed strong international interest in 3- and 10-year securities. The stock market had mixed results: the NASDAQ hit a record high, while the Dow and S&P indexes fell.

Central Banks Rate Decisions

Next week, four central banks will announce their interest rate decisions. The Federal Reserve may lower rates due to falling consumer sentiment. The Bank of Canada might also cut rates as economic growth slows. The Bank of England is expected to keep rates steady despite high inflation. The Bank of Japan may hold its rates unchanged, with a possible hike later this year. These decisions will likely impact global markets next week, focusing on inflation, labor data, and geopolitical factors. With the Federal Reserve meeting next week, we anticipate the start of a rate-cutting cycle. Current markets indicate a 92% chance of a 25-basis-point cut, the first since the rate hikes began in 2022. Traders are using options to bet on future cut speeds, expecting this to be the first of several cuts by year’s end. With central bank decisions coming from the US, Canada, UK, and Japan in a short period, market volatility is expected to rise. The CBOE Volatility Index (VIX), known as the “fear gauge,” has been edging up from its summer lows, closing yesterday at 14.8. We are purchasing VIX call options or straddles on major indices to take advantage of significant price swings, no matter the direction.

Divergence in Monetary Policy

The differences in monetary policy create clear opportunities in currency markets, especially with the Japanese yen. While we expect the Fed to cut rates, the Bank of Japan may hike later this year to address its inflation and weak currency. This sets up a favorable trade to go long the yen against the dollar, which we can do by buying call options on the FXY ETF or shorting USD/JPY futures. In equity markets, there’s a divide between soaring tech stocks and a weaker broader market. The NASDAQ achieving a new record while the Russell 2000 small-cap index declines highlights a trend toward quality and growth. Traders prefer call options on large-cap tech stocks benefiting from lower rates while using put options on the IWM ETF as a hedge against slowing economic data impacting smaller companies. The bond market shows concern, as the yield curve continues to flatten, with short-term rates increasing more than long-term ones this past week. We recall how the Fed reacted to a University of Michigan inflation report in 2022. With 5-year inflation expectations climbing again to 3.9%, traders believe long-term inflation will remain persistent. This supports trades that profit from the narrowing spread between 2-year and 10-year Treasury yields. This cautious stance is backed by recent economic data indicating a slowing economy but not a collapse. The latest Non-Farm Payrolls report for August 2025 showed only 95,000 new jobs, putting more pressure on the Fed. However, core inflation remained at a stubborn 3.8%, explaining why the central bank might deliver a “hawkish cut” with careful language next week. Create your live VT Markets account and start trading now.

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US stock market futures opened flat and stayed that way throughout the day. The S&P 500 briefly hit an all-time high but ended up closing down by 3 points at 6584, breaking its four-day winning streak. The Nasdaq saw a small increase, thanks to a 7% jump in Tesla shares, which closed at a record high. Here’s how the major indices wrapped up for the day: – S&P 500: down 0.1% – Nasdaq Composite: up 0.5% – DJIA: down 0.6% – Russell 2000: down 0.8% – Toronto TSX Composite: down 0.4%

Weekly Performance Across Indices

For the week, the S&P 500 rose by 1.6%, the Nasdaq Composite went up by 2.0%, the Russell 2000 gained 0.5%, and the Toronto TSX Composite increased by 0.8%. Overall, most indices showed growth, even though the market finished flat on the last day. With the market showing signs of weariness at record highs, it’s time for caution. The CBOE Volatility Index (VIX) is hovering near a low of 13, making it cheaper to buy protection. It might be wise to purchase put options on broad market ETFs like SPY to protect our long positions against a possible drop in the weeks ahead. The divide between the strong Nasdaq and the weaker Dow and Russell 2000 indicates a narrowing in market leadership. Recent data reveals that even with the S&P 500 at a high, less than 45% of its stocks are trading above their 50-day moving average, creating a classic bearish divergence. This trend suggests that pairs trades—like going long on Nasdaq futures while shorting Russell 2000 futures—could perform well if this pattern continues.

Federal Reserve Meeting And Market Implications

Attention is now focused on the upcoming Federal Reserve meeting later this month. With last week’s jobs report showing a resilient labor market, there’s increasing uncertainty about what the Fed will say regarding future interest rates. Options traders might consider strategies like straddles, which benefit from significant price movements in either direction after the announcement. It’s also important to keep in mind the seasonal patterns of the market. September and October are typically volatile months, as seen with the sharp drop in fall 2023. Given this year’s strong market run-up, the current flat trading might be a sign of an approaching turbulent period. Holding some downside protection seems smarter than making speculative bets. Create your live VT Markets account and start trading now.

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Canada is gearing up for an important week as key economic data and a significant decision from the Bank of Canada are expected. On Monday, July manufacturing shipments are predicted to increase by 1.8%, up from 0.3% previously. Wholesale sales, excluding petroleum products, are set to rise by 1.3%. Existing home sales for August have already shown an increase of 3.8%. Tuesday’s forecast for August housing starts is 273.2K, a decrease from 294.1K. The Consumer Price Index (CPI) is expected to see a monthly rise of 0.1%, with a yearly increase of 2.0%. Core measures indicate a median rise of 3.1% year-over-year and a trimmed increase of 3.0%.

Bank Of Canada Rate Decision

On Wednesday, we will also get data on international securities transactions, which gained $0.7B in July. The Bank of Canada is anticipated to cut its rate to 2.50% from 2.75%. Retail data on Friday is expected to show July retail sales dropping by 0.9%, following a prior 1.5% rise. Retail sales excluding autos grew by 1.9%. The Canadian economic situation is under close scrutiny, with markets anticipating potential rate adjustments. Although consumers are showing resilience, concerns about rising layoffs remain. With expectations high for a rate cut from the Bank of Canada next Wednesday, the focus extends beyond the cut itself; investors are keen on the Bank’s forward guidance. Recent data revealed an unexpected 0.2% contraction in Canada’s economy during the second quarter of 2025, supporting a dovish outlook. Furthermore, Statistics Canada reported an increase in the unemployment rate to 6.2% in August, adding pressure for easing of policies.

Consumer Price Index Impact

Tuesday’s CPI report will be critical, setting the tone for the Bank’s rate decision. If inflation numbers are higher than expected, the 90% probability of a rate cut could be challenged, leading to a spike in the Canadian dollar and short-term yields. Traders may consider short-dated options on the loonie to prepare for any surprises due to high implied volatility. The main focus will be on the Bank’s statement on Wednesday. If more cuts are signaled, the Canadian dollar may weaken further, making USD/CAD call options appealing. Over the past two months, the Canadian dollar has already declined by 3% against the US dollar as the market reacts to this policy divergence. With a rate cut almost fully expected, the risk is not evenly balanced. A surprise hold or a very hawkish statement could trigger a strong rally in the Canadian dollar. Traders should think about strategies that capitalize on potential sharp movements in either direction, especially if they believe the market is overly complacent about the outcome. Lastly, Friday’s retail sales data will be crucial in assessing consumer health, a significant concern. A disappointing number could raise the current 38% chance of another rate cut in October, reinforcing the case for a weaker loonie heading into the fourth quarter. Recall that core inflation was quite persistent in early 2024, and the Bank may be cautious about cutting rates too quickly if consumers show unexpected strength. Create your live VT Markets account and start trading now.

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The upcoming week features important events like the FOMC rate decision and Chair Powell’s press conference. Alongside, three other central banks will meet to announce their policies: The Bank of Canada is expected to lower rates by 25 basis points, while the Bank of England and the Bank of Japan are likely to keep their rates steady. Traders will be looking for clues about future moves.

Key Economic Events

On Monday, traders will track China’s economic data. Retail sales are forecasted to grow by 3.8%, industrial production by 5.7%, and fixed asset investment will also be examined closely. Tuesday brings the UK’s jobs report, which is expected to show the unemployment rate at 4.7% with a focus on wage growth. On the same day, Canada will release its CPI figures and the US will provide retail sales data. On Wednesday, the FOMC meeting is anticipated to announce a 25 basis point rate cut, alongside updated economic projections. The Bank of Canada is also meeting that day, likely to cut rates by 25 basis points. In New Zealand, GDP for Q2 is expected to reveal a decline of -0.3%. Thursday will center around the Bank of England meeting, where the Bank Rate is expected to stay at 4.0%. Traders will look for hints about potential deeper cuts or a slower pace of quantitative tightening. On Friday, the Bank of Japan will hold its meeting, expected to keep rates at 0.5%, and also release UK retail sales data for August. The quad witching phenomenon might cause increased market volatility. As the Federal Reserve prepares to cut rates by 25 basis points next Wednesday, this move may already be factored into the market. This notion is backed by the August jobs report, which showed nonfarm payrolls slightly below expectations at 160,000. Our main focus will be on the updated economic projections and Chair Powell’s tone regarding future directions.

Market Volatility and Strategies

Due to uncertainty surrounding the Fed’s plans, the VIX index has risen to about 18, up from the low teens during the summer. This signals traders to brace for volatility in anticipation of Wednesday’s announcement. Options straddles on the S&P 500 could be a good strategy for capturing significant market moves, regardless of their direction. This situation is reminiscent of the “mid-cycle adjustment” by the Fed in 2019, where a series of rate cuts were made to support a slowing economy. That period resulted in short-term market fluctuations before stocks resumed their upward trend. We’ll closely watch for any signals from Powell indicating whether this is just a temporary adjustment or the beginning of a broader easing cycle. Differences in central bank policies also offer clear opportunities in the currency markets. With the Bank of Canada set to cut rates while the Bank of England holds steady, this environment favors long positions on the British pound against the Canadian dollar. Recent data from the UK shows that wage growth remains strong at over 5.5%, leading the BoE to maintain a conservative stance for now. The Bank of Japan poses an interesting variable; any indication of a future rate hike could lead to a significant strengthening of the yen. This creates a favorable risk-reward situation for buying inexpensive, out-of-the-money put options on the USD/JPY pair—potentially lucrative if the BoJ surprises with a hawkish stance. To round off the week, we have quad witching, when four types of derivative contracts expire simultaneously. This can lead to unusually high trading volumes and potential price fluctuations, especially as Friday’s market close approaches. Historically, we’ve seen volumes on these days rise by more than 30%, amplifying market reactions to central bank news. Create your live VT Markets account and start trading now.

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Tesla shares have hit their highest point since February, climbing 7%. This increase comes after a stable period and matches trends seen in other stocks like Oracle. Market activity suggests a meme-driven approach, boosted by talks about AI and possible interest rate cuts. While some are cautious about the Federal Reserve’s next moves, any drops in stock prices might offer buying chances.

Market Movements

In other financial news, major markets are experiencing changes, including a possible US tariff on EU goods, shifts in the US dollar, and changes in Microsoft shares. A general risk warning points out the complexities of foreign exchange trading and stresses the need to understand the associated risks. It’s wise to review personal investment goals and talk to financial advisors. InvestingLive provides market information for educational purposes but clearly notes that it doesn’t give investment advice. They advise clients to examine outside sources and state that they are not responsible for any financial losses that may come from relying on their information. The website also includes a disclaimer about potential compensation from advertisers based on user interactions.

Powerful Breakout

Tesla is experiencing a strong breakout, reaching its highest level since February 2025. Shares have pushed past $215, with the next target being the 2024 high near $250. The surge in call option volume, particularly for short-term contracts, indicates that traders expect the stock to keep rising. This trend reflects a wider meme-driven market, largely fueled by the AI narrative. We recently saw a similar spike with Oracle, and AI-focused ETFs have attracted over $15 billion in just the last quarter. For now, traditional metrics like earnings are taking a backseat to pure momentum and stories. A key factor behind this is the expectation of a shift from the Fed, especially with next week’s FOMC meeting on the horizon. The latest CPI data from August 2025 showed a slight cooling at 3.1%, raising hopes that the Fed has finished increasing rates. Even if Powell sounds cautious, any resulting dips should be viewed as buying opportunities since many believe rate cuts are likely by November. For those trading derivatives, it’s wise to avoid holding short positions on high-momentum stocks. With the VIX at a low 14, purchasing call options or call spreads on stocks like Tesla can provide leveraged gains while managing risk. Consider using the increased volatility around next week’s Fed decision to sell cash-secured puts on dips, allowing you to collect premiums while betting that support will hold. Create your live VT Markets account and start trading now.

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