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 approaches. This decision comes as the S&P 500 index shows a modest increase, reflecting a cautious yet optimistic market sentiment. The move to close 50% of the 6037.35 strike SPX call, which has achieved a 71% gain, underscores the importance of risk management, especially with the option just in the money and two weeks remaining until expiry. This action aligns with Citi's broader strategy to navigate the current market conditions effectively.
The Direxion Daily S&P 500 Bull 3X Shares (SPXL) has responded positively, rising 1.55% to $188.30 as of 1:40 PM on Monday, December 16.