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– Ryan Fitzwater, Publisher

The FOMC was today’s big catalyst event in our Catalyst Cashouts trading service.

Unlike previous Fed meetings, there was no big expectation of the Fed raising or lowering rates coming in.

But I knew the Fed was going to talk.

And boy did they have a lot to talk about.

After all, this is the first time they’re addressing all of Trump’s tariff decisions and how they’ve been affecting markets.

Still, when it comes to my own trading, these catalyst events often present big buying opportunities.

How I trade around catalyst events like the FOMC

When it comes to Fed meetings, it’s important to know how they typically affect markets.

First, I know the market is going to hang on one key word or phrase from the Fed.

Maybe the Fed says they aren’t going to raise rates more than a couple times until the end of the year – or maybe they adjust the rate schedule. Who knows.

But what I do know is the market likes to latch onto one sentiment, and then make its move accordingly.

That sentiment could be something as simple as someone asking the Fed a question and they don’t have an answer, and then the market hangs on that lack of clarity and moves down.

Or maybe somebody tweets something and they get into a battle and the market hates it.

So yeah… lots of scenarios.

But the big question is…

How do you, as a trader, take advantage of this volatility.

Because the truth is…

These uncertain scenarios often lead to big market moves.

And I believe that heading into this event – we were setting up for one of those “flip on its head” moves.

Here’s one trade I like to use for volatile events.

The Art of the Strangle Trade

One trade you can use in the uncertain but potentially volatile event is the strangle trade.

Here’s how it works.

The strangle trade is an options strategy involving the purchase of two options. It consists of one call (you think the market will go up) and one put (the market will go down).

This allows you to hedge your bets, and take profits in the event of a big move.

It’s one of my top trading strategies when I expect volatility but I’m unsure of which direction the market will go.

And the latest FOMC meeting was the perfect time to use this strategy.

YOUR ACTION PLAN

Strangle plays ahead of big catalyst events like the FOMC are the types of plays we do every week during our live weekly livestream in Catalyst Cash-Outs.

We’ve been on a roll to start 2025.

So far we have a 90% win rate on all our Catalyst Cash-Outs trades and we’re a perfect 3-for-3 in the month of March.

Don’t miss our next big catalyst event.

Click here to my most recent FOMC trade and get access to all our future trades each week.