While there is a possibility the hawkish Fed narrative will continue to drive prices, the expectation of higher rates is not really news at this stage. Pullbacks for the S&P to the 200-day moving average at 4,490 should be considered a buying opportunity.
If we earn tomorrow’s dividend, and if CPB closes above $45 at expiration on May 20, we would earn $1.45 per share on $43.92 at risk, or 3.3%. Over 45 days, that would be an annualized return of 26.8%.
Today’s bull put spread articulates the view that GES, which trades at $22.55, will remain above $22, in which case the trade would produce the maximum profit. The breakeven would be GES at $$21.60 at expiration.