Rather than take the position through the FOMC announcement this afternoon, this week's position was closed prior to the release.

I mentioned in last night's post that I sometimes will exit a position early prior to a news event for less than target gain, or breakeven. While the "news" reports didn't expect any major policy changes as a result of this week's Fed meeting and resulting minutes' release, I was concerned that the announcement may move the market against this week's position.

After the first couple of hours, of trading, our position was not quite at breakeven, but I felt it was a wise risk management decision to close the position for a minimal loss as a new trade entry is just a couple of days away, rather than have the trade go against me this late in the cycle because of the pending release.

A summary of the closing order and this week's position is:

- Original position 15.70 Credit

- Call Roll adjustment 10.10 Debit

- Closing Order 5.90 Debit

Closing order executed at 11:25 am est; SPX at 1592.78.

- The closing order resulted in a $30 loss before commissions, a net loss of $66 after my broker's fees. This represents 2.2% of the total margin ($3,000).

Year to date results for the weekly SPX Iron Butterfly are below:

SPX weekly 2013 Results

The results year-to-date now average 3.65% gain per week, still a very respectable gain on an annual basis.

The next entry date for this trade will be Friday, May 3, for the May 2 cycle. The monthly Non Farms Payroll report is being released Friday before the open. This news is often a market-moving event, so our entry will be after things settle down, most likely later in the day. Trade recommendations for entry strikes will be posted Thursday evening.

Trade carefully,

Dot Hazlin