Market too irrational to enter October SPY Iron Condor today.
The bulls came back at the open this morning in full force, at least to start the day. The guidelines for all the Couch Potato Trader plays state that if the underlying has moved up or down more than a one-day standard deviation, it is not recommended to enter a new position.
As of this writing, SPY is up 3.55 points. According to the calculation on my broker's platform, the one-day standard deviation is 3 points. Even if the market settles today, with the VIX still over 25 I am recommending we wait at least one more day before entering a new, non-directional strategy such as the Iron Condor.
I will post an update as the week progresses, and recommend a trade entry that I feel is reasonable.
In the meantime, stay keen on your risk management and trade carefully,