Continuing worries over Greece overshadowed a positive jobs report. Indices closed lower Friday, but ended the week with solid gains.
SPX closed down 8 points Friday at 2055, but still managed to gain 3% for the week.
Below is the current open position status:
SPX Weekly Iron Condor
This February 2 weekly position was opened Friday; trade details are:
- SOLD SPX February 2 2105 Call.
- BOUGHT SPX February 2 2115 Call.
- SOLD SPX February 2 2010 Put.
- BOUGHT SPX February 2 2000 Put.
Order was filled as an "Iron Condor" for $1.40 net credit (all four legs).
SPX was at 2067 at the time the order filled, so the closing price Friday at 2055 was 15 points below the entry point. The risk graph showing the position as of the close is below:
SPX February 2 Weekly Iron Condor
Despite the drop after entry, the position ended up $25; the current debit to close the position is $1.15. (The risk graph shows inaccurate after-hours pricing). The position is nicely centered going into next week. Target gain remains at 7% of the margin or risk ($60), max loss of 10% or ($86). The SPX chart is below showing the short strikes:
SPX 6 month chart
Next week is a relatively quiet week for economic news; a recap is below:
10:30 am EIA Petroleum Status Report
8:30 am Retail Sales
8:30 am Jobless Claims
10:00 am Business Inventories
8:30 am Import & Export Prices
10:00 am Consumer Sentiment
Next week is the planned entry for the SPY Iron Condor for the March monthly cycle. Monday will be 39 days to expiration; so we will plan to enter the position sometime next depending on market conditions and available credit. For those unfamiliar with the trade, guidelines were last posted on September 10, 2013, and the article can be found at this link: Link to Articles
Position updates will be posted as appropriate.
As always, stay keen on your risk management and trade carefully,