Citi's Global Macro Strategy team has taken a strategic step to partially unwind their S&P 500 call position, aiming to secure profits as the year-end nears. This decision comes as the S&P 500 index hovers around 6083.49, reflecting a 0.54% increase from its previous close. The move to close 50% of the 6037.35 strike SPX call, which has achieved a 71% gain, underscores the importance of risk management in the current market environment. With the option just in the money and two weeks remaining until expiry, Citi's analysts are keen on locking in some profits to navigate the concluding market conditions of the year.
The Direxion Daily S&P 500 Bull 2X Shares (SPUU) has responded positively, rising 1.18% to $158.91 as of 1:40 PM on Monday, December 16.