S&P 500 Pushes Higher as Rate Optimism Returns
The S&P 500 extended its May gains as softer CPI data rekindled rate cut expectations. However, the index encountered resistance at 4,250, and without a catalyst to break through, further upside may be limited near-term. We favor a bull-call spread structure over directional exposure at current levels.
Full Outlook →VIX Holds in Elevated Range — Contango Returns
After spiking to 26 in late April, the VIX has settled back to the low-20s, trading in a relatively stable range. The VIX futures curve has returned to mild contango after a brief period of backwardation. This environment is favorable for put protection at reasonable costs and selling volatility into rallies.
VIX Deep Dive →Iron Condor — Capitalizing on Range-Bound Volatility
With the VIX in a 20–26 band and the S&P 500 sitting just below major resistance, an iron condor makes sense. We recommend selling the 4,180/4,200 put spread and the 4,280/4,300 call spread, both 2 weeks out, collecting premium in the $1.80–$2.20 range per spread.
More Strategies →Key Data on Deck
Tuesday: CPI (April) — expected +0.2% core. Wednesday: PPI, Fed minutes. Thursday: Retail sales, jobless claims. Friday: Consumer sentiment, industrial production. CPI and Fed minutes are the week's main volatility drivers.
Economic Calendar →