The Federal Reserve's interest rate decision meeting is approaching! How should SPY/QQQ be positioned?

This article focuses on the practice of trading options. This column focuses on the investment landscape, an opportunity to understand the outlook and teach parents how to use options to handle the opportunities of others.

If you are a trading veteran, you may remember something new about Fed Shock. The most powerful headquarters in the world are simultaneously taking a deep look at Capital Markets.

At the end of the conference, when Fed Chairman Powell spoke at the podium, investors took a moment to hear “Good Afternoon.” Especially during the 22-year Fed rate hike, which often caused a “scare” to the markets, Powell's opening statement became a well-known meme in the investment world.

This week, the U.S. Federal Reserve will hold an opening meeting, and the results of the interest rate decision will be announced on October 30, Beijing time (2 hours later this week). At 2:30 p.m., Weill will give a talk to the media. This SIR takes a look at the foregoing and related options strategy of the Fed meeting.

Continuous Interest Rate Reduction Path

Market sentiment and sleight of hand before results are published. FedWatch is a tool developed by CME Group to process interest rates data on the market to show the likelihood of a mutual fund raising, lowering or maintaining interest rates. It can be seen that the margin drop of 25 basis points to 3.75%-4% has already reached 97.8%, which means that this is the upper hand. The next conference meeting is likely to be reduced by 25 basis points, and the fourth consecutive decline in January is already close to 50%.

Data source: CME FedWatch. Data as of 28 October 2025.

The US CPI data was delayed until last Friday due to the government shutdown, with the final data showing that inflation pressures in the US were slightly lower than market expectations and the impact of tariffs on inflation was not significant. Core inflation fell to 3.0%, service prices remained mild, and the US economy did not deteriorate.

Preventative downturns occur against the backdrop of economic weakness, employment and growth, and the current mobile and non-speculative applications are currently stabilizing. This type of operation is effective at low risk-free rates, lowering the cost of financing for companies and individuals, thus benefiting Capital Markets. In fact, after the release of the five CPI data last week, the three major U.S. stock indexes hit a new all-time high and continued to show strength this week.

It should be noted that the Fed's interest rate path forecast (the “Bitmap”) is only published at each quarterly meeting, with relatively little information from this session, which can be followed by post-meeting statements and statements at Powell's announcement.

Is the market already counting on a favorable forecast, and is it really running? What should happen if a fruit warehouse has already become complacent and is unwilling to sell hand-held codes at the same time as the market reverses? At this time, the options strategy strategy is available.

Where are the big ETF options special? How is it suitable for counteracting?

A large-cap ETF means something like $SPDR S&P 500 ETF(SPY.US)$ 、 $Invesco QQQ Trust(QQQ.US)$ ETFS LIKE THIS. Your Trade is not a single company, but a comprehensive representation of the market, which is used as the simplest expression tool for visitors.

In the financial market, risk can be divided into two types:

Non-systemic risk: These are specific risks within the company, such as management changes, product development losses, and rival teams. This risk can be mitigated by diversifying your investments, rather than splitting your Hold Positions into different Stocks and Sectors.

SYSTEMIC RISK: REFERS TO RISKS THAT AFFECT THE ENTIRE MARKET, SUCH AS ECONOMIC DOWNTURNS, INTEREST RATE POLICY CHANGES, WARS, GLOBAL PANDEMICS, ETC. It cannot be avoided by diversifying investments, and the volatility brought about by Fed meetings falls into this category.

The peculiarity of large ETF options is that they are a tool that many Institutions investors use to manage and trade systemic risk. VIX, the largest index of financial markets, is derived from options on the S&P 500 Index. When calculating VIX, you select outcalls and putts with a large number of different contract prices, which are the most sensitive to changes in market expectations, since the VIX indicator is essentially the equivalent of a basket of options extending the wave of IV.

As the largest ETF options in the US, the SPY and QQQ trade volumes split the daily trading volume, reducing the selling price differentials, improving execution efficiency and strategy failure rates. Individual stock options vary, with better liquidity for top tier stocks such as NVIDIA and Tesla, while many options are not as dynamic as index options.

More importantly, index options offer longer maturities to choose from. Stock options are typically month-to-date, with some of the top stocks holding periodic options, and High Volatility Index Funds (ETFS) options such as SPYQQ and QQ, which usually offer futures contracts on each trading day, so you can design your strategy to be more dynamic.

For example, the Federal Reserve Bank published its interest rate decision and policy statement at 2:00 p.m. on Tuesday afternoon, and the market subsequently opened trade on it. For Options Traders who only have monthly maturities, it is necessary to establish headings a number of weeks before the event occurs, not only the need to contract a longer time value loss, but also to pay close attention to the timing risks of the current day of the event. Traders can follow a more accurate strategy by borrowing SPY or QQQ's daily maturity options.

Real-World War Operations

Below, we will explain how to use large options to insure your Hold Positions through SPY options.

When the market falls, your Stocks combine to lose money, but the value of Put options you hold increases significantly. The profit from the options can be compensated in whole or in part by the loss of your Stocks Account Account. This strategy is called Protective Put.

Buy a Tuesday's put from your existing warehouse location on the day of the meeting or two days before the meeting. The day after the market falls, the gains on the options can effectively offset the losses of Asset Assets, which are sold symbols. At the end of the meeting, the deadline that you did not reach is the worst result of losing the rights interest and not continuing to incur the loss of time value due to holding options for a long time.

Futubull's wave analysis tool shows that currently SPY's IV is lower than the historical level, benefiting from options trading. Level IV indicates that the future volatility of the symbol is greater for market participants and the possible increase in the position price and options under the same conditions will be preferred.

(The design images displayed on the screen are for illustrative purposes only and do not constitute any investment proposal or guarantee)

Put options at 685.24 on a weekly basis, as SPYs recognize that after the end of the pooled meeting, the market may experience a drop of about 1% relative to the weekly counter, so you can buy put options at the option price of 678. You can choose the option price in turn based on your assessment of the market.

(The design images displayed on the screen are for illustrative purposes only and do not constitute any investment proposal or guarantee)

The number of options headers can be determined by your existing Hold Positions. As a general rule, if you have a long-term Bullish symbol, the amount of funds invested in Protective Put is less than 0.5%-2% of Total Assets only in terms of relational risk.

There are many options strategies available for the Joint Reserve Board meetings. If you keep an eye on your co-backed moves with a deep, clear directional timeframe, you can directly buy a Call or Put with a current due date using the large-format ETF daily maturity and straightforward directional bets. 0DTE options (Zero to Date, end-of-day options) are relatively low in price, and offer higher dips, and high returns are possible in a very short period of time. Needless to say, this strategy is more risky.

In addition, although the current quotation volatility is lower, if there is an increase in volatility on the day of the meeting, it is also possible to sell a cross or saddle combination to enjoy the benefits of a volatility crash. We used to beHow to play through the Earnings Reports season with options? These tools are here to help.”Interested fellow investors can look ahead to these strategies.

In an options strategy on a stock page, six charts are conducted under different market views, six symbols are categorized under different options options strategies, rising, balanced, and falling market conditions, and corresponding to strategic strategy categories. Various market conditions such as ups, falls, balances and falls, and a detailed explanation of the options strategy. To determine a strategy to execute well, click Trade to follow directly below.

If you are new to options, it is completely useless to choose from a wide range of strategy combinations. You can practice using Bull Papertrade with a certain amount of experience.

Well, let me tell you today, what strategy will you adopt regarding the downside? Feel free to Share!

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