We're planning to enter Weekly Credit Spreads and Iron Condor Thursday and/or Friday.
This afternoon could bring some volatility to the market; the FOMC minutes are being released at 2 pm EST. Also, Chairman Ben Bernanke is speaking at an engagement shortly after the market closes. While the content of his speech is scheduled to be on the history of the Federal Reserve policy, investors will be listening carefully to see if there is any further indication of the timing of the QE tapering.
If market conditions are suitable, we are planning to enter July 3 positions over the next couple of days, after the economic news settles. Jim Brown shows a detailed spreadsheet with pending economic news in his nightly Market Wrap. The Option Code for the July 3 options is 130720. This is the regular monthly cycle expiring on July 20.
As of this writing, the current price of both RUT and SPX is above the 20 day Moving Average, so we will enter Put Credit Spreads, as per the guidelines published on May 12. For those of you not familiar with this trade, the article can be found here:
Link to Articles
We will also be entering an SPX weekly Iron Condor for the same cycle, 10 points wide. The guidelines were published on July 4, and can be found in the same link above. We did not enter this position last week, as there was not sufficient credit to warrant entry. It is not recommended to enter this position unless the credit is at least $1.25.
Some of you are trading the 25-point wide Iron Condor; I will only enter the 10 point wide position this week as I have had requests from some subscribers looking for a weekly trade requiring less initial margin.
We will likely diversify and spread out the trade entry over both Thursday and Friday; it is a trader's choice whether you choose to enter all on the same day. Trade entry details will be posted.
As always, stay keen on your risk management and trade carefully,