Hosts Nick and Tony conducted a selective What's Your Assumption session executing seven trades while managing existing positions ahead of major Fed meeting and Oracle/Adobe earnings. The Carvana trade stood out as Tony adjusted viewer's tight 500-520 call ratio to wider 500-530 spread for $1.50 credit, capturing the stock's 12-day parabolic move from $300 to $460 with 10 short deltas. The NVIDIA-Google pair trade (long 200 NVIDIA, short 100 Google) provided engagement positioning on the ratio spread with Nick emphasizing it's "a trade not a position" for scalping purposes. Oracle January 185 puts at $4 represented neutral-to-bullish earnings play with 82 IV rank expected to crush to low-50s post-earnings. Multiple existing positions prevented new entries including TLT (hosts long bonds via various structures), Netflix (Nick has synthetic covered calls with 96-100 short puts), and iBit (both hosts locked and loaded with multiple strategies). The Adobe discussion featured creative bearish butterfly structure buying 330-325 put spread and selling 315 puts twice for 10-cent credit, though Tony questioned the 50-cent profit potential. Lockheed Martin deemed untradeable with $2-3 wide option markets, with hosts passing despite viewer Roberto's "guaranteed upside" assertion for holiday defense spending.

Hosts Nick and Tony conducted a selective What's Your Assumption session executing seven trades while managing existing positions ahead of major Fed meeting and Oracle/Adobe earnings. The Carvana trade stood out as Tony adjusted viewer's tight 500-520 call ratio to wider 500-530 spread for $1.50 credit, capturing the stock's 12-day parabolic move from $300 to $460 with 10 short deltas. The NVIDIA-Google pair trade (long 200 NVIDIA, short 100 Google) provided engagement positioning on the ratio spread with Nick emphasizing it's "a trade not a position" for scalping purposes. Oracle January 185 puts at $4 represented neutral-to-bullish earnings play with 82 IV rank expected to crush to low-50s post-earnings. Multiple existing positions prevented new entries including TLT (hosts long bonds via various structures), Netflix (Nick has synthetic covered calls with 96-100 short puts), and iBit (both hosts locked and loaded with multiple strategies). The Adobe discussion featured creative bearish butterfly structure buying 330-325 put spread and selling 315 puts twice for 10-cent credit, though Tony questioned the 50-cent profit potential. Lockheed Martin deemed untradeable with $2-3 wide option markets, with hosts passing despite viewer Roberto's "guaranteed upside" assertion for holiday defense spending.

Market remained largely unchanged ahead of the Federal Reserve's interest rate announcement, with S&P, NASDAQ, Russell, and Dow showing minimal movement. Volatility indicators suggest a potential grind before significant action occurs following the Fed decision.

Despite expectations of interest rate cuts, bonds and notes traded lower, contradicting their typical inverse relationship with rates. Bitcoin dipped to $62,000 while Ethereum held steady.

For investors concerned about hedging long delta portfolios against sudden market drops, futures contracts offer the most capital-effective solution. Experts recommend under-hedging (25-50%) rather than attempting to fully neutralize positions.

Trading activity on Fed meeting days typically shows less volatility compression than normal, suggesting traders should consider reducing position sizes and taking quicker profits during these events.

Market remained largely unchanged ahead of the Federal Reserve's interest rate announcement, with S&P, NASDAQ, Russell, and Dow showing minimal movement. Volatility indicators suggest a potential grind before significant action occurs following the Fed decision.

Despite expectations of interest rate cuts, bonds and notes traded lower, contradicting their typical inverse relationship with rates. Bitcoin dipped to $62,000 while Ethereum held steady.

For investors concerned about hedging long delta portfolios against sudden market drops, futures contracts offer the most capital-effective solution. Experts recommend under-hedging (25-50%) rather than attempting to fully neutralize positions.

Trading activity on Fed meeting days typically shows less volatility compression than normal, suggesting traders should consider reducing position sizes and taking quicker profits during these events.