It is recommended to close SPX Weekly Iron Condor before the end of the day Tuesday. The markets are pushing higher, ignoring geopolitical issues which is putting the open weekly position in jeopardy.
The bulls returned in full force yesterday; SPX closed at 1971.74, up 17 points from Friday. Below is the graph of the current open weekly position:
SPX August 4 Iron Condor
The position is currently $-25.00, and the short call strike is less than 15 points away. I mentioned in my weekend update that it was recommended to exit the position either before the end of today, or at the latest before the FOMC minutes are released Wednesday afternoon. As of this writing, futures are positive by about 3 points. Before the open today there are two economic news reports:
8:30 am Consumer Price Index
8:30 am Housing Starts
I am recommending that this position be closed before the end of the day today. It is just too stressed out to the upside to take the overnight risk going into Wednesday. We have had a great record of successful trades since introducing the weekly Iron Condor into the trade plan; so I would rather take my lumps and close it and move onto the next week.
Some more aggressive traders may choose to take this position overnight, but it is outside my risk management parameters.
I do recommend closing with one debit closing order, rather than splitting it into two verticals. I will post closing debit when the trade is exited.
As always, stay keen on your risk management and trade carefully,