We will cautiously enter an SPX Iron Condor and/or Credit Spread for the November 1 cycle.
For those of you who follow/trade the weekly SPX Iron Condor, last week's trade had to be closed for a loss; the bullish trend over the last week was not kind to short term, non-directional trades. As of this morning, it appears the bulls may be taking a bit of a break. Whether it is just a breather, or a reversal, remains to be seen.
I am planning to enter a weekly position on SPX tomorrow if market conditions are conducive to entry. The position will be for the November 1 cycle. The option code for this cycle is SPXW131101, expiring on November 1. The two trades being considered are:
- Credit Spread, as per the guidelines published on May 12. The original guidelines call for the short strike delta to be -15 or -16. If this position is entered, I will be on the more conservative side, selling a delta in the -.12 to -.15 range, no higher.
- Iron Condor, as per the guidelines published on July 4.
For those of you unfamiliar with these trades, the articles with the guidelines can be found here: Link to Articles
As of this morning, I am undecided if I will enter one, or both positions for next week's cycle. I will evaluate the market movement today, and the first hour in the morning. I will post an update with specific trade recommendations tomorrow.
As always, stay keen on your risk management and trade carefully.