Tuesday’s CPI report arrives amid a pullback in technology stocks and renewed uncertainty surrounding the AI trade. A cooler inflation reading could ease pressure on Treasury yields, while another upside surprise may reinforce expectations for further Fed tightening.
CPI
Why Option Premiums Look Too Thin To Sell
Why selling options premium offers thin compensation with short-dated implied volatility near its lows, and the SPX gamma levels that would change that.
CPI Meets Positive Gamma: The SPX Levels That Could Determine the Next Move
Wednesday’s inflation report could determine whether stocks extend their rally or face renewed selling pressure as rising Treasury yields threaten to disrupt a relatively calm options market.
CPI Is the Catalyst. 7600 Is the Trade.
Markets are pricing a roughly 70% chance of a rate hike at the September 16 FOMC, and August CPI is the last inflation print the Fed sees before deciding. A look at what the option market is implying, the gamma setup into Friday’s expiration, and the three scenarios that matter.