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I was expecting maybe more fireworks out of the FOMC but got very little.  The Fed will unwind their balance sheet by the time I am 82.  That reminds me of the old cathedrals that took generations to build where the father passed on the skills to the son.  Now we just pass our debt to the next generation.  Either way VIX closed sub 10 for the first time that I can remember on a FOMC day.  The rate picture is clear for near forever in market terms.

 

On a down vol day, AAPL IV perked up a bit.  The hype surrounding the iPhone1000 (as in price tag) has petered out and AAPL is trading a bit lower than the blowout earnings day last cycle.  IV in the 20 handle is usually a good short term sale in AAPL.  You can sell Oct put spreads right at the pre-earnings level  now.  I am guessing that the iWatch issue that drove down the stock is not worth $50 billion in market cap to $148 or so.

The Trade

Selling AAPL Oct20 148 puts and below looks yummy right now.  Short put spreads make the risk palatable.

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Disclosure: AAPL positions

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