SPX Weekly Iron Condor Results

For those of you following/trading the weekly SPX Iron Condor, the last 3 weeks have presented their "challenges" to this position. However, none of the losses have been severe, primarily to the tight risk management policy that is incorporated into my trading plan. Each of these positions were closed for breakeven or a small loss because of news-related events :

- September 2: resolution of Syrian crises caused the market to gap up

- September 3: Position closed for breakeven prior to FOMC announcement

- September 4: Debt ceiling/budget concerns caused the market to swoon to the downside for 2 consecutive days. Volatility was low at the time of trade entry. The downside swoon caused an increase in volatility, contributing further to the increasing cost to close the put spreads of this position.

The net cumulative gain on this strategy, including the losses, is 4.5% gain per week over the past 13 weeks; a very respectable return on an annualized basis.

I have updated the cumulative results for the trade, and they are posted below.

SPX Weekly Iron Condor Results



As I've written previously, there may be weeks when I decide to sit on the sidelines from a weekly position either because there is not sufficient credit to warrant trade entry, or I feel that market conditions are not worth the risk. Cash IS a position that is not at risk of major news events. I mentioned yesterday that I am not certain yet whether I will be entering an Iron Condor for the October 1 cycle this Thursday because of the looming September 30 deadline regarding the budget. I now feel that it is best to skip this week's entry, so there will not be a weekly Iron Condor position for the October 1 cycle.

Please let me know if you have any questions on the trade, or the results.

As always, stay keen on your risk management and trade carefully,

Dot Hazlin