Open Position update: SPY May Iron Condor and SPX Weekly Credit Spread for May 1. Friday's move was good for one position, not so good for the other.
A combination of mixed earnings results and the Russia/Ukraine tension produced a sharp sell-off Friday. Below is the status of the two open positions:
1) SPY May Iron Condor
SPY closed Friday at 186.39. The bearish move on Friday has brought the position back into positive territory; as of the close the iron condor is +$14.71. However, the short call strike of 190 is still less than 4 points away, so the position will be monitored closely and exited if SPY reaches 190. As I mentioned last week, if the rally resumes off Friday's lows SPY will still need to climb above the all-time high of 189.70 before reaching the short strike.
SPY May Iron Condor
The SPY 6 month chart is shown below, indicating the short strike.
SPY 6 month chart
2) SPX Weekly Put Credit Spread for May 1
Below is the open weekly position as of the close Friday:
SPX May 1 Weekly Credit Spread:
SPX closed Friday at 1863.40, down 15 points from the previous day and just slightly above the 20 day EMA. The short put strike of 1825 is 38 points away; the selloff on Friday was not favorable to this position. The position is currently -$34.90. At approximately 2:30 Friday the debit to close the position flashed at the max loss ($1.50), but my OCO did not trigger so the position remains open. If there is follow-through to the selloff on Monday this position may be stopped out. The OCO remains in place to exit the position for .20 (target gain), or if the debit to close reaches $1.50 ($75 max loss).
The 6 month chart of SPX is shown below showing the strikes for the current position as well as the next support level of 1850:
SPX 6 Month Chart:
An update will be posted early next week.
As always, stay keen on your risk management and trade carefully,