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 approach to risk management. The move to close 50% of the 6037.35 strike SPX call, which has achieved a 71% gain, underscores the importance of locking in profits amid current market conditions. With the SPX spot reference at 6074.93, the option is just in the money, prompting Citi to emphasize the need for prudent risk management as the option nears its expiration.
The Invesco S&P 500 Equal Weight ETF (RSP) experienced a slight increase, rising 0.03% to $182.22 at 1:40 PM on Monday, December 16.