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 SPX spot reference hovers around 6074.93, with the option just in the money. By closing 50% of their 6037.35 strike SPX call expiring on January 2, 2025, Citi locks in a 71% gain, translating to a partial profit of $920,000. This move underscores the importance of risk management, especially with two weeks remaining until expiry. The strategy reflects a cautious approach to navigating market conditions as the year concludes.
The ProShares UltraPro S&P 500 (UPRO) ETF has responded positively, rising 1.56% to $98.98 as of 1:40 PM on Monday, December 16.