The holiday-shortened trading week ended virtually unchanged as investors digested economic and geopolitical news.
Some analysts feel the sideways chop is not surprising, as the stock market is fatigued with the news of slowing emerging markets and geopolitical threats flaring up around the world.
SPX closed Friday up just 1.24 points or less than 0.1% at 2090.
Below is the current open position status:
SPX Weekly Iron Condor
This December 1 weekly position was opened Friday; trade details are:
SOLD SPX December 1 2125 Call, 1.80 credit.
BOUGHT SPX December 1 2135 Call, .80 debit.
SOLD SPX December 1 2025 Put, 3.50 credit.
BOUGHT SPX December 2015 Put, 2.80 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 December 1 Weekly Iron Condor
As of the close Friday, the position is just above breakeven, the debit to close is currently $1.65. The position is quite negative delta so should benefit from a pullback early next week. Our OCO "good to cancel" order remains in place to exit the position for target gain or max loss.
Below is the 6 month chart showing the short strikes:
SPX 6 month chart
Next week's economic news is summarized below:
9:45 am Chicago PMI
10:00 am Pending Home Sales
10:30 am Dallas Fed Manufacturing Survey
9:45 am PMI Manufacturing Index
10:00 am ISM Manufacturing Index
10:00 am Construction Spending
8:15 am ADP Employment Report
8:30 am Productivity and Costs
10:30 am EIA Petroleum Status Report
12:00 pm Fed Chair Janet Yellen Speaks
2:00 pm Beige Book
Janet Yellen testifies before Joint Economic Committee
8:30 am Jobless Claims
10:00 am Factory Orders
10:00 am ISM Non Manufacturing Index
8:30 am Non Farms Payroll Report
8:30 am International Trade
For those unfamiliar with the strategies, the trade management guidelines for all the Couch Potato Trader plays were most recently published on August 20, 2015, and can be found here:
Link to Articles
Trade updates will be posted as appropriate.
As always, stay keen on your risk management and trade carefully,