After a two-day break from the recent rally, SPX managed to recover to close at 1936.16, +6.05 from the previous day. Below is the status of our two open positions:
1) SPX Weekly Iron Condor Test Position.
Below is the open SPX Weekly Iron Condor test position for the June cycle:
SPX Weekly Iron Condor Test Position:
The position is +$25.04, or 2.8%% of the margin. I have set a target gain of 7% of the margin ($63), or max loss of 10% ($100). This position will remain open until Wednesday if target gain or max loss is not reached. Next week brings numerous economic news releases which I will outline below. The most noteworthy one is the FOMC meeting culmination and Chairman Yellen's press conference Wednesday afternoon. While many say there will be no "new news", she does bring a track record of creating volatility in the market when she speaks. This position will be exited regardless before the 2 pm meeting announcement.
Below is the 6 month chart of SPX, showing the strikes sold.
SPX 6 Month Chart:
2)SPY July Iron Condor
SPY closed Friday at 194.13. Our open monthly position is shown below; it is currently +$15.94, or 3.8% of the margin/risk. As this is a monthly position with 34 days remaining to expiration, I will keep this position open through the FOMC meeting as long as it remains within the guidelines.
SPY July Iron Condor Position:
Below is the SPY 6 month chart showing the strikes sold.
SPY6 Month Chart:
- This position will continue to be managed as a "no touch"; it will remain open as long as SPY remains between the short strikes, until the target gain is reached. Target gain is 10% of the margin/risk. The position will be exited at either short strike or the pre-set 15% max loss.
Having said that, it is a traderâ€™s individual decision whether to wait for target gain, or max loss, on any position. Trading is a blend of oneâ€™s individual style, risk tolerance, and intuition. This combination can help reach your annual trade plan results. I recommend following your own trade style; there is nothing wrong with exiting a position early. Remember, trading is an art, not a science.
Below is a summary of the major economic news releases for the coming week:
9:15 am Industrial Production
8:30 am Consumer Price Index
8:30 am Housing Starts
2:00 pm FOMC Meeting Announcement and Forecasts
2:30 pm Chair Yellen's Press Conference
8:30 am Jobless Claims
10:00 am Philadelphia Fed Survey
Trade updates will be posted as appropriate.
As always, trade carefully and stay keen on your risk management.