Cool CPI, Low VIX, USD/JPY Carry Unwind positioning?

Given the current macro environment – cool core CPI with PCE likely to follow (if historical behavior repeats), low VIX, USD/JPY carry unwind, thin holiday liquidity/volume…

How are you positioning your portfolio into January?

I'm mostly in cash now (~80%) with the exception of a few medium-term positions I identified as cheap relative volatility with minimal theta drag: long calls on GOOGL, NVDA, SOFI. Also in the CC leg of a wheel position on F

I feel if you have a short-term focus (< 30DTE) you're likely to eat theta over the next week or two until institutions are back in January and start re-deploying capital. With thin liquidity and low VIX likely meaning grinding moves, just lowers the likelihood of getting enough benefit from delta/gamma, while fast approaching the steep part of the theta curve.

The carry trade is an interesting aspect, but nothing yet suggests an unwind is imminent. Would need to see a VIX spike along with the USD/JPY drop with momentum. IWM puts are an interesting play to monitor though, since small caps are likely to get hit harder if the unwind is violent.