Major indices ended Friday deep in the red, as the persistent deadlock in Greek debt talks turned investors cautious heading into the weekend.
SPX closed Friday down 11.25 points or .5% at 2109.99, but did manage to post a modest gain for the week of .8%.
Below is the current open position status:
SPX Weekly Iron Condor
This weekly position was entered Friday; position details below:
- SOLD SPX June 4 2150 Call, $1.75 Credit.
- BOUGHT SPX June 4 2160 Call, $.70 Debit.
- SOLD SPX June 4 2065 Put, $2.65 Credit.
- BOUGHT SPX June 4 2055 Put, $2.05 Debit.
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 June 4 Weekly Iron Condor
As of the close, the position is currently (-$5) (debit is $1.70 to close). Our "good to cancel" exit order remains in place to close the position when 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. The position is fairly well centered and should benefit from a quiet open on Monday.
Below is the 6 month chart showing the short strikes:
SPX 6 month chart
SPY July Iron Condor
This monthly position was opened Monday, June 8. Position details are:
Order executed for this month's SPY position:
- SOLD SPY July 216 Call, $.60 Credit.
- BOUGHT SPY July 221 Call, .08 Debit.
- SOLD SPY July 198 Put, 1.14 Credit.
- BOUGHT SPY July 193 Put, $.67 Debit
Order was filled as an "Iron Condor" for $.99 net credit (all four legs) .
Margin/Risk is calculated by the width of the wings ($500), less credit received.
Margin/Risk for this trade: $401.
Target Gain: 10% of margin/risk.
Max loss: 15% of margin/risk.
Below is the risk graph of this monthly position as shown on my broker's platform:
SPY July Iron Condor:
Below is the SPY chart showing the short strikes:
SPY 6 month chart
SPY closed Friday at 210.81, the same as the week before. As of the close, the position is at a gain of $31.
The guidelines call for the position to remain open until target gain is reached, as long as SPY stays between the short strikes. They also call for exiting at the pre-set max loss, or if SPY reaches either short strike. It is recommended to have a "good to cancel" conditional order in to exit the position for target gain or max loss. Please follow your broker's specific guidelines on the setup of conditional orders as they can vary by broker.
Next week's economic news is summarized below:
10:00 am Existing Home Sales
8:30 am Durable Goods Orders
9:45 am PMI Manufacturing Index
10:00 am New Home Sales
8:30 am GDP
10:30 am EIA Petroleum Status Report
8:30 am Jobless Claims
8:30 am Personal Income & Outlays
10:00 am Consumer Sentiment
Trade updates will be posted as appropriate.
As always, stay keen on your risk management and trade carefully,