The Fed rate decision is tomorrow so I wanted to give Power Plays Options subscribers a quick strategy update.

I am in a bit of a cleanup mode, so I’ve been selling some equity longs which I’m not committed to – like CCJ, NVDA, GME, and I even got short TSLA by going long TSLQ*.

(*TSLQ is an inverse ETF that rises when TSLA falls)

I am buying some longs, but I am being selective.

And you’ll see below in my disclosures that I have many options positions.

I’ll share more insights into my options strategies in the weeks ahead, but for now, you should understand that my favorite thing about options is that I can define my risk.

So if something goes against me, I know what I can lose.

And right now, I’m in a mode where I’m ready to play defense if things really break down.

Now when we look at the broader markets now, things do feel shaky.

Small caps are getting hit (maybe in anticipation of a “hawkish rate cut” tomorrow) and many leaders are sliding – NVDA being the most obvious one.

I am long NVDA calls, but again – I’m using options there to keep risk defined.

Near-term, I’d like to see Friday’s low at SPY $602.80 hold.

If we lose that, and then $602, we may have to switch gears fast.

Stay safe out there.

-Scott