SPX December Call Credit Spread closed prior to FOMC fireworks this afternoon.
With the FOMC "taper, no taper" announcement looming at 2 o'clock this afternoon, I took advantage of an early exit of this week's call credit spread for a gain less than target to avoid the potential damage to the position if the market moves against the trade this afternoon.
At approximately 10:30 am with SPX at 1784.00, I closed the position for a debit of .50. This represented a gain of $40, or 4.4% of the margin/risk. While not our target for the week, I have removed the risk and will move on to the next trade.
As I mentioned the other day, the next weekly trade entry will be Friday of this week for the December 4 cycle. GDP report comes out before the open so I will wait to see the market settle after the news.
Stay keen on your risk management and trade carefully,