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Why I’m buying options ahead of FOMC, BOJ meetings: Berger

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With two big central bank meetings this week, Serge Berge is looking to trade options in the SPDR S&P 500 ETF also known as SPY.

Both the US Federal Open Market Committee and the Bank of Japan are meeting this week and according to Berger this opens up for the opportunity to buy options either as a hedge or a more speculative trade.

He is looking to buy put options in SPY as the S&P 500 has rallied more than 10% in past week and implied volatility has reached what he says is an attractive spot. Serge says he is buying May 202 strike puts for $5.80 or less with a price target at 196 and a stop loss at 207.