What a week! The market decline accelerated Friday; SPX suffered the worse weekly decline since 2012.
Friday continued with a follow-through of Thursday's drop; SPX fell 22 points, or -1.1%, to close at 1906 just above what I hope is support at 1900. Coinciding with the market dropping, the volatility index VIX popped up 2.48 points, up 13.2%, to close at 21.24.
Below is the status of the current open SPX weekly Iron Condor:
This week's SPX Iron Condor for the October cycle was filled for a net credit of $1.30 just before 2:00 pm est. The position summary is as follows:
SHORT October 1980 Call.
LONG October 1990 Call.
SHORT October 1855 Put.
LONG October 1845 Put.
Below is the risk graph of the current position as of the close Friday:
SPX October Weekly Iron Condor
The position is currently -($20) as of the close. The position is slightly long delta; it will benefit from a "gentle" move up, along with a drop in volatility. The position will remain open until target gain is reached, but will be closed as per the guidelines if the pre-set max loss reaches ($85).
The chart below shows the short strikes:
SPX 6 month chart
The one year chart of the VIX is below; Friday's pop touched the level we saw back in February.
VIX one year chart:
Next week brings a fair amount of economic news starting mid-week:
Columbus Day US Holiday; stock market open; bonds closed.
12:30 pm Fed. Charles Evans speaks
8:30 am Producer Price Index
8:30 am Retail Sales
8:30 am Empire State Manufacturing Survey
10:00 am Business Inventories
2:00 pm Beige Book
8:30 am Jobless Claims
9:15 am Industrial Production
10:00 am Philadelphia Fed Survey
10:00 am Housing Market Index
11:00 am EIA Petroleum Status Report
12:15 pm Fed. Esther George speaks
1:00 pm Fed. James Bullard speaks
2:30 pm Fed. Narayana Kocherlakota speaks
8:30 am Housing Starts
9:55 am Consumer Sentiment
Position updates will be posted as appropriate.
As always, stay keen on your risk management and trade carefully,