How to Take a Low-Risk Directional Shot at Tomorrow's Fed Decision.

Tomorrow is the Fed decision, the textbook binary event, and everyone wants a shot. Jim Schultz walks through his go-to way to play direction into it without getting run over by the volatility crush. His pick is the expected move butterfly, a one by two by one with the short strikes set at the edges of the expected move. He builds it on SPX for the broad, cash-settled exposure, then shows how to shrink the cost by narrowing the wings or pushing the strikes out, so the max loss is only ever what you pay. His bigger message: trade binary events around the edges and keep the 45 to 21 day cycle as your foundation. This is education, not a recommendation. 📊 tastylive: https://www.tastylive.com/ 📰 Get Tom's pre-market analysis every morning: https://www.tastylive.com/newsletters 📘 FREE Options Strategy Guide: https://tinyurl.com/bp9ms763 📱 Follow tastylive on X: https://x.com/tastyliveshow Chapters 00:00 Tomorrow's Fed decision is binary 00:23 A muted-risk way to take a shot 00:48 Why volatility crush hurts long options 02:24 Meet the expected move butterfly 03:26 Why he builds it on SPX 04:38 Placing the strikes and the cost 07:12 How to shrink the butterfly's cost 10:01 Trade binary events around the edges #tastylive #fomc #optionstrading #jimschultz #calculatedrisk #butterflyspread #spx #optionsstrategy #fed #optionseducation tastylive is a real financial network, producing hours of live programming every day. Follow along as our experts navigate the markets, provide actionable trading insights, and teach you how to trade. With over 120 original segments, and over 25 personalities, we'll help you take your trading to the next level, whether you are new to trading or a seasoned veteran. tastylive content is created, produced, and provided solely by tastylive, Inc. ("tastylive") and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read all applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange Traded Options Risk Disclosure Statement found at https://tastytrade.com/disclosures/. Past performance is not indicative of future results. Performance is not presented net of all commissions, fees, and expenses. Multi-leg option strategies incur higher transaction costs than single leg trades as they involve multiple commission charges. Examples provided are for illustrative, informational, and educational purposes only and are not intended to be reflective of results you can expect to achieve. Supporting documentation for any claims, including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer.