Ahead of today's FOMC decision, Goldman has several trade recommendations to profit from FOMC-day volatility.
First, the big picture.
According to the bank's derivatives analyst, John Marshall, S&P options imply a +/-1.1% move for today's FOMC day; this compares to an average of +/-0.8% move priced into SPX ahead of the last 4 FOMC meetings; Today's implied move, if realized, would be less than the +/-1.3% during the last 4 FOMC meetings with realized moves coming higher than expectations in 2 out of the last 4 events; the December FOMC saw an outsized move (+/-2.9%) relative to unusually low expectations (+/-0.7%).
