The bears came out of hiding Friday ahead of next week's FOMC meeting.

Below is the status of our current open positions:

1) SPX Weekly Iron Condor

SPX closed Friday at 1986, down almost 12 points from the previous day or .57%.

This week's SPX Iron Condor for the September weekly cycle was filled for a net credit of $1.55 Thursday. The position summary is as follows:

SOLD September 2020 Call.

BOUGHT September 2030 Call.

SOLD September 1940 Put.

BOUGHT September 1930 Put.

Below is the risk graph of the current position as of the close Friday:

SPX September Weekly Iron Condor

The position is currently +$42.52 as of the close; target gain remains at 7% or $60. It is recommended to exit this week's position prior to the close on Tuesday, or at the latest Wednesday morning, prior to the FOMC meeting announcement Wednesday afternoon. Details on next week's economic events is at the end of this article.

The chart below shows the short strikes:

SPX 6 month chart

2) SPY October monthly Iron Condor

SPY closed Friday at 199.13, down a little over one point or .58% from the previous day.

The October SPY Iron Condor was filled for a net credit of $.83 last Monday. The position summary is as follows:

SOLD SPY October 206 Call.

BOUGHT SPY October 211 Call.

SOLD SPY October 193 Put.

BOUGHT SPY October 188 Put Put.

Below is the risk graph of the current position as of the close Friday:

SPY October Monthly Iron Condor

The position is currently up slightly ($5.49) as of the close; target gain remains at 10% of actual margin/risk or $42. Because this is a monthly position, I will keep the trade open through the FOMC announcement as long as it remains with in the guidelines.

The chart below shows the short strikes:

SPY 6 month chart

Next week brings quite a bit of potentially market-moving economic news :

Monday

8:30 am Empire State Manufacturing Survey

9:15 am Industrial Production

Tuesday

FOMC Meeting Begins

8:30 am Producer Price Index

Wednesday

8:30 am Consumer Price Index

10:00 am Housing Market Index

10:30 am EIA Petroleum Status Report

2:00 pm FOMC Meeting Announcement

2:30 pm Chair Janet Yellen Press Conference

Thursday

8:30 am Housing Starts

8:30 am Jobless Claims

10:00 am Philadelphia Fed Survey

It is recommended to exit this week's SPX Iron Condor prior to the close on Tuesday, or at the latest Wednesday morning. The FOMC meeting announcement and subsequent press conference by Janet Yellen has potential to rock the boat, and any move against the Iron Condor so close to expiration would be difficult to recover from.

At this time, it is planned to enter another weekly SPX Iron Condor for September 4, as well as a RUT monthly Iron Butterfly for October on Thursday. However, nothing is definite until I see how the market reacts to the FOMC meeting announcement.

For those unfamiliar with the RUT monthly Iron Butterfly, the guidelines were posted on Thursday, September 4. Here is a link where you can find the article: Link to Articles

I will post trade updates as appropriate.

As always, stay keen on your risk management and trade carefully,

Dot Hazlin