SPX managed to achieve new intra-day all time highs once again; RUT headed in the opposite direction on Friday.

Below is the status of our current open positions:

1) SPX Weekly Iron Condor

SPX closed Friday at 2010.40, flat from the previous day and down from the all-time high reached earlier in the day of 2019.26.

This week's SPX Iron Condor for the September 4 weekly cycle was filled for a net credit of $1.25 Friday. The position summary is as follows:

SOLD September 4 2040 Call.

BOUGHT September 4 2050 Call.

SOLD September 4 1985 Put.

BOUGHT September 4 1975 Put.

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

SPX September Weekly Iron Condor

The position is currently +$22.43 as of the close; target gain remains at 7% or $60.

The chart below shows the short strikes:

SPX 6 month chart

2) SPY October monthly Iron Condor

SPY closed Friday at 200.70, also flat from the previous day.

The October SPY Iron Condor was filled for a net credit of $.83 on September 8. 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 +$38.46 or +9% as of the close Friday. This is just shy of the target gain of 10%. If the market allows, we may be able to exit the position for 9 or 10% next week.

The chart below shows the short strikes:

SPY 6 month chart

3) RUT October Iron Butterfly

RUT closed Friday at 1146.92, down 12 points or 1.07% from the previous day.

Of all the major indices, RUT chart is definitely looking bearish right now:

RUT 6 month chart

The October Iron Butterfly was filled about one hour after the open with RUT at 1163, just before the downturn began and continued for most of the day. The position was opened for a net credit of $29.70, and a summary is as follows:

SOLD RUT October 1160 Call.

BOUGHT RUT October 1210 Call.

SOLD RUT October 1160 Put.

BOUGHT October 1110 Put.

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

RUT October Iron Butterfly

The position is at the adjustment trigger point, and the current gain is +$125. While the entry timing was not the best, you will see from the risk graph that the trade is still flat delta, and not near the lower expiration breakeven with the drop Friday. However, the position will be adjusted on Monday if RUT does not rally above 1150. The guidelines call for the threatened side to be rolled 20 points. This can be accomplished with one order: "BUY Condor"; in this case all Puts. The adjustment would be:

BUY RUT October 1160 Put.

SELL RUT October 1110 Put.

SELL RUT October 1140 Put.

BUY RUT October 1090 Put.

This adjustment, if necessary, will be a debit adjustment. As of now, the cost for the 20-point roll is $5.85 (all four legs), but this will most likely change by the time of the adjustment. The graph below gives an example of the adjusted position if the roll is done:

RUT October Iron Butterfly If Adjusted

Next week brings a fair amount of economic news, along with a flurry of Fed speakers. Any of them could cause some ripples after last week's FOMC statement:

Monday

10:00 am Existing Home Sales

10:00 am William Dudley Speaks

7:30 pm Narayana Kocherlakota Speaks

Tuesday

8:30 am Jerome Powell Speaks

8:30 am Esther George Speaks

10:00 am PMI Manufacturing Index

Wednesday

10:00 am New Home Sales

10:30 am EIA Petroleum status Report

12:05 pm Loretta Mester Speaks

1:00 pm Charles Evans Speaks

Thursday

8:30 am Durable Goods Orders

8:30 am Jobless Claims

1:20 pm Dennis Lockhart Speaks

Friday

8:30 am GDP Revision for Second Quarter.

Position updates will be posted as appropriate.

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

Dot Hazlin