We have some nice action to the downside with our $444 SPY puts, which expire at the end of the day tomorrow. We got into them at about $2.10 and they are currently trading at about $6.05.

The SPY is down about 1.15% on a hot ADP jobs number adding 497K jobs in June. Non-farm payrolls come out tomorrow at 8:30am ET, which should provide another potential jolt of volatility.

We also have some Fed speak out today with Lorrie Logan, Dallas Fed president and a voting member this year of the FOMC this year, talking about the need for more hikes and how she is very skeptical of the lag many market participants are referencing when we really have not seen the impact of the rate hikes that we would like to see to know that inflation is on its way back to the Fed's 2% goal:

“I remain very concerned about whether inflation will return to target in a sustainable and timely way,” Logan said Thursday in remarks prepared for delivery at the Central Bank Research Association’s annual meeting in New York. “I think more-restrictive monetary policy will be needed to achieve the Federal Open Market Committee’s goals of stable prices and maximum employment...My hope was that the overall package of communications coming out of the June meeting would deliver a strong signal to financial markets and meaningfully tighten financial conditions,” Logan said, speaking publicly for the first time since the meeting. 

Things could get very interesting with another hot jobs number tomorrow. The market is looking for around 225K jobs added. That report is out at 8:30am ET. 

We are holing our SPY put for now. Stay tuned for updates!

The 2 year yield was at about 5% when the banking crisis hit in early March, pulled back to about 3.5%, and is now back at 5%!

The 10 year yield is back above 4%.

The VIX is seeing some action as fear is on the rise.