Open Position update: IWM December Iron Condor and SPX Weekly Credit Spread Results
1) IWM December Iron Condor
IWM closed Friday at 111.85; hovering close to the adjustment point. The position is currently at breakeven. Our short call strike is a bit more than 2 points away, so a pullback would be welcome.
Below is the current position:
IWM December Iron Condor as of the close November 22:
If the market continues the rally on Monday and IWM moves up over 112, I will likely adjust the position before the end of the day. At this point I am recommending rolling the call spreads 3 points to -117/+122, and the puts 2 points to -105/+110. More aggressive traders may choose to roll the puts closer, but I am hesitant to get too close to the underlying in the event the inevitable pullback happens. If adjusted, it is a trader's choice whether to increase the position to gain additional credit. It is recommended to only increase by 1.5 times for those who choose to do so.
2) SPX Weekly Put Credit Spread Results
Below are the November results for the weekly SPX Credit Spreads:
Weekly Credit Spread Results:
We all believe the market will stall, then reverse - but it is the timing of such a move that is such a gray area. As long as the trend is up and SPX remains above the 20 day EMA, I will continue to enter put credit spreads on a weekly basis. However, as I have said before, if the market conditions are outside the guidelines, or a political battle rears its ugly head again, I will sit on the sidelines and keep cash as my position.
We will most likely enter a new weekly position Wednesday of next week for the December 1 cycle. I will post an update by Wednesday morning with my thoughts and recommendation.
As always, stay keen on your risk management and trade carefully,