We study the trading behavior of financial intermediaries around Federal Open Market Committee (FOMC) announcements in the S\&P 500 options market using daily and high-frequency data. Proprietary trading firms are net sellers of options on FOMC days as opposed to non-FOMC days. This liquidity provision is particularly pronounced when monetary policy is unexpectedly accommodative and market interest rates fall. Strikingly, the morning trades of proprietary trading firms predict monetary policy shocks and option price movements later in the day, suggesting that some financial institutions may have preferential access to the information release by the Fed regarding the future path of policy actions. Our results show that monetary policy not only boosts intermediaries' risk taking and liquidity provision through option trades but also grants them a trading edge due to their informational advantage.