Too risky to enter the SPX Weekly Iron Condor Test Position today.
I have been watching potential setups for the new weekly trade entry. As of this writing, SPX has come off the lows, but is still down over 7 points on the day. The intent of the weekly Iron Condor is to take advantage of time decay rather than price movement. What concerns me is the upside risk of selling calls on a day like today. Currently the short 1975 call has a delta of .12, so is within the trade entry guidelines. However, that is only 24 points away at the current time (2 standard deviations), and it wouldn't take much to be threatened to the upside with a rally off of today's lows.
The six month chart below indicates the uptrend is intact, although it does appear the bulls are getting tired. That adds to my concern about opening up this position today; I just don't trust either calls or puts for a new entry this afternoon.
SPX 6 month chart
I am not recommending entering this position today; I will re-visit tomorrow and consider entry if the market looks more favorable. Remember, cash IS a position so I will keep that in my wallet overnight.
I will post an update tomorrow.
As always, stay keen on your risk management and trade carefully,