I significantly underweight US equity.
Now I am starting to building position using short term call.
If market down 5-10%, Power has to indicate that he is willing to cut 50 pbts, otherwise the market will crash , and pull down the economy with it.
So, I will buy a lot more if market down 5-10%.
If the market recover from here, I will sell.
Why? because if everything goes well, Power has no reason to cut 50 bpts, that would a disastrous event for the market.
Using option will limit my loss, If I am wrong.
