FOMC minutes have moved SPY outside the entry range for the May monthly Iron Condor.
The release of the FOMC minutes brought the bulls out immediately. As of this writing, SPY has moved up over 1.4 points, which is more than a one day standard deviation. This is outside the trade entry guidelines, so I am not recommending a new position for today.
I will plan to enter the monthly Iron Condor for May sometime tomorrow as long as the market has settled.
As far as a weekly trade for next week's cycle is concerned, I am not sure the market is stable enough yet to enter a new position. After the selloff Friday and the after-shock Monday, things have consolidated a bit. However, I am not that comfortable, as of today anyway, risking capital for a short term trade. I don't really trust either call spreads or put spreads; I would rather sit on the sidelines until the bulls and bears battle this out to better determine direction. Remember, cash IS a position so I recommend practicing patience, or trading with paper money, for this cycle.
I recently received an email from a new subscriber to the newsletter inquiring about weekly Iron Condors on SPY as an alternative, and/or in addition, to the SPX weekly Credit Spread. Depending on market conditions tomorrow, I may enter a small "test kitchen" position in Paper Money. The short strikes for both calls and puts will be placed at .15 or less delta, placing the longs 5 points from each short strike. This is not a live trade recommendation; I want to go through a few weeks of testing before placing live capital into the strategy.
I will post trade updates as appropriate.
As always, stay keen on your risk management and trade carefully.