Insights 
VT 
The S&P 500 saw movement post-FOMC, cutting into Sunday’s gap, with bonds also trading lower. Institutional selling was observed at the close among key sectors such as XLK, XLC, XLY, and XLF.
The EUR/USD has weakened, falling to levels last seen in early August, while GBP/USD fell below the 1.3100 support for the first time since April. Gold approached the $4,000 mark per troy ounce, retracting earlier gains, and Bitcoin bounced back over $110,000 after four days of losses.
Potential Influences for the Upcoming Week
The upcoming week poses challenges, with potential influences from Fedspeak, the US Supreme Court, and economic data affecting the Dollar’s strength. The anniversary of Bitcoin’s whitepaper highlights its evolution from a digital cash concept to a legitimized financial asset over 17 years.
Information provided carries risks, and financial markets can be uncertain. Individuals are advised to thoroughly research before making investment choices, with emphasis on understanding potential losses. This article provides informational purposes only, with no liability on accuracy or completeness guaranteed.
The S&P 500 is caught in a state of indecision following the recent FOMC meeting, where we saw institutional selling pressure in key sectors. Bonds have also sold off sharply, which typically weighs on stocks. However, we have doubts that this bearish sentiment will last, as confidence returning to the bond market should provide a lift for equities.
This uncertainty is reflected in the CBOE Volatility Index (VIX), which has been stubbornly holding above 21, a sign of heightened market anxiety. The 10-year Treasury yield pushing back toward 4.25% is the main driver of this nervousness, reminding us of the unstable periods back in 2023. If yields can pull back, that will be the green light for stocks to resume their upward trend.
Buying Options as a Strategy
For the next few weeks, this makes buying options an attractive strategy to position for a breakout while defining risk. Traders could look at SPY call spreads expiring in December to bet on a year-end rally, or protective put spreads if they believe the recent institutional selling is the start of a larger downturn. This approach allows participation in a big move without risking significant capital if the market remains stuck.
With the VIX elevated, option premiums are richer than they have been for most of 2025, creating an opportunity for those who believe the market will remain range-bound. Selling iron condors on the SPX or other major indices could allow traders to collect that higher premium. This strategy profits from the market staying within a specific price channel, effectively a bet that the current indecision will continue.
