Another roller-coaster week, as earnings, FOMC, and economic reports weighed on investors.
After a strong bounce off of last week's lows, SPX closed Friday at 2014, down 5 points or -.22%. The benchmark index posted a weekly gain of 1.2%, and a gain of 2% for the month.
Below is the current open position status:
SPX Weekly Iron Condor
This weekly position was entered Friday; position details below:
- SOLD SPX August 1 2135 Call, 1.30 Credit.
- BOUGHT SPX August 1 2145 Call, .60 Debit.
- SOLD SPX August 1 2065 Put, 2.80 Credit.
- BOUGHT SPX August 1 2055 Put, 2.05.
Order was filled as an "Iron Condor" for $1.45 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: $855.
Target Gain: 7% of margin/risk or $60.
Max loss: 10% of margin/risk or $85.
The risk graph showing the position as of the close is below:
SPX August 1 Weekly Iron Condor
The position is showing a gain of +$35, or 4% of the margin. The current debit to exit the position is $1.10.
Our "good to cancel" exit order remains in place to close the position when the debit reaches $.85, which would be target gain. The position will be closed at target gain, or if the pre-set max loss of 10% is reached.
Below is the 6 month chart showing the short strikes:
SPX 6 month chart
Next week brings a fair amount of economic news; a recap 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
8:30 am Jobless Claims
8:30 am Monthly Employment Situation
Trade updates will be posted as appropriate.
As always, stay keen on your risk management and trade carefully,