Update on SPY April Iron Condor and SPX Credit Spread plans for March 4 weekly cycle.
1) April SPY Iron Condor
Our April SPY Iron Condor is currently $+22.01, up 5.2% of the actual margin. The open position is shown below:
SPY April Iron Condor as of the close March 18:
This afternoon's FOMC announcement and subsequent press conference by Janet Yellen could bring some volatility to the market. But on the other hand, it could also be priced into the recovery this week since the lows on Friday. Time will tellâ€¦.
This position will remain open as long as SPY stays above 179 or below 194, the two short strikes. The position will be exited at either short strike, target gain ($41), or max loss ($-62).
2) SPX Credit Spread for March 4 Weekly Cycle
The plan is to enter a SPX Credit Spread for next week's cycle tomorrow (Thursday). The Option Code for this cycle is SPXW140328, expiring March 28.
The 6 month chart of SPX is shown below:
SPY 6 month chart as of the close March 18:
The EMA as of yesterday is 1852.67, and SPX closed at 1872.25. Unless there are some huge surprises between today and entry time tomorrow, the trade entry will likely be a put credit spread. I will wait at least the first hour as usual, and may wait until the afternoon to enter. Last week's entry and being stopped out very swiftly the same day has me a bit more cautious and aware of intra-day price movement, so I will practice patience before entering. I will look to sell a put spread where the short delta is -.15 or less, for the minimum credit of $.75.
I will post trade entry details when the position is opened.
As always, stay keen on your risk management and trade carefully.