The trading week ended lower after a barrage of weak economic reports.
Indices across the board posted modest losses for the week after Friday's sell-off. SPX closed at 2107, down 13 points or -.65%. This resulted in a loss for the week of -0.9%.
Below is the current open position status:
SPX Weekly Iron Condor
This weekly position was entered Friday; position details below:
- SOLD SPX June 1 2145 Call, $1.15 Credit
- BOUGHT SPX June 1 2155 Call, $.45 Debit.
- SOLD SPX June 1 2055 Put, $4.00 Credit.
- BOUGHT SPX June 1 2045 Put, $3.00 Debit.
Order was filled as an "Iron Condor" for $1.70 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: $830.
Target Gain: 7% of margin/risk or $58.
Max loss: 10% of margin/risk or $83.
The risk graph showing the position as of the close is below:
SPX June 1 Weekly Iron Condor
As of the close, the position is currently +$10 (debit is $1.60 to close). Our exit order remains in place to close the position when the debit reaches $1.10, which would be target gain. The position will be closed at target gain, or if the pre-set max loss of 10% is reached. The position is nicely centered and just slightly negative delta, so will benefit from a quiet open on Monday.
Below is the 6 month chart showing the short strikes:
SPX 6 month chart
Next week brings a fair amount of economic news, including the monthly Employment Report at the end of the week. A recap of next week's economic news is below:
8:30 am Personal Income & Outlays
9:45 am PMI Manufacturing Index
10:00 am ISM Manufacturing Index
10:00 am Construction Spending
10:00 am Factory Orders
8:15 am ADP Employment Report
8:30 am International Trade
10:00 am ISM Non-Manufacturing Index
10:30 am EIA Petroleum Status Report
2:00 pm Beige Book
8:30 am Jobless Claims
8:30 am Productivity & Costs
8:30 am Monthly Employment Report
Trade updates will be posted as appropriate.
As always, stay keen on your risk management and trade carefully,