Better-than-expected earnings propelled the broad market to close at record levels yesterday.
SPX rose to close yesterday at 2117.69, up .23% which topped the previous close back on March 2 by a few cents. The index recorded a solid gain for the week, +1.8%.
Below is the current open position status:
SPX Weekly Iron Condor
This May 1 weekly position was opened Friday; trade details are:
- SOLD SPX May 1 2145 Call, $1.35.
- BOUGHT SPX May 1 2155 Call $.60.
- SOLD SPX May 1 2070 Put, $2.95.
- BOUGHT SPX May 1 2060 Puts, $2.05.
Order was filled as an "Iron Condor" for $1.65 net credit (all four legs).
Margin/Risk is calculated by the width of the wings ($1,000), less credit received.
Margin/Risk for this week's trade: $835.
Target Gain: 7% of margin/risk or $58.
Max loss: 10% of margin/risk or $84.
The risk graph showing the position as of the close is below:
SPX May 1 Weekly Iron Condor
As of the close, the position is currently +$15. Our exit order remains in place to close the position if the debit reaches $1.05, which would be target gain. The position will be closed at target gain, or if the pre-set max loss of 10% is reached. This week's economic news (summarized below) brings the FOMC meeting announcement on Wednesday, and it is recommended to exit the position regardless prior to that news. While it is sometimes a "sleeper", the FOMC news can create volatility that may negatively affect a short term position such as the weekly Iron Condor.
Below is the 6 month chart showing the short strikes:
SPX 6 month chart
Next week is a busy week for economic news, the highlight being the FOMC meeting announcement on Wednesday. a recap is below:
10:30 am Dallas Fed Manufacturing Survey
FOMC Meeting Begins
9:00 am Case Shiller HPI
10:00 am Consumer Confidence
8:30 am GDP
10:00 am Pending Home Sales Index
10:30 am EIA Petroleum Status Report
2:00 pm FOMC Meeting Announcement
8:30 am Jobless Claims
8:30 am Personal Income & Outlays
8:30 am Employment Cost Index
9:45 am Chicago PMI
9:45 am PMI Manufacturing Index
10:00 am ISM Manufacturing Index
10:00 am Consumer Sentiment
10:00 am Construction Spending
Trade updates will be posted as appropriate.
As always, stay keen on your risk management and trade carefully,