New Trade Entry: SPXWeekly Iron Condor for February; order filled.

Order executed for this week's position:

- SOLD SPX February 1 1970 Call, 2.25 Credit.

- BOUGHT SPX February 1 1980 Call, 1.35 Debit.

- SOLD SPX February 1 1820 Put, 2.05 Credit.

- BOUGHT SPX February 1 1810 Put, 1.55 Debit.

Order was filled as an "Iron Condor" for $1.40 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: $860.

Target Gain: 7% of margin/risk or $60.

Max loss: 10% of margin/risk or $86.

Below is the risk graph of this week's position as shown on my broker's platform:

SPX February 1 Weekly Iron Condor:

My charting program is having some technical issues this morning so I am not able to post a chart. I will post a chart in the Weekend Update, an apologize for the technical problems.

Trade Management:

The guidelines call for the position to remain open until target gain is reached, as long as SPX stays between the short strikes. They also call for exiting at the pre-set max loss, or if SPX reaches either short strike. It is recommended to have "good to cancel" order in for both target gain and max loss. The setup of conditional orders can vary by broker, so please check with your broker if you are unfamiliar with conditional orders on your trading platform.

Having said that, it is an individual's own decision whether to wait for target gain, or max loss, on any position. Trading is a blend of individual style, risk tolerance, and intuition. This combination can help reach your annual trade plan results. I recommend following your own trade style; there is nothing wrong with exiting a position early. Remember with weekly trades, there are 52 opportunities in a year to trade so it is important to be comfortable with your trade size and position. Remember, trading is an art, not a science.

For those unfamiliar with the strategy, the trade management guidelines for all the Couch Potato Trader strategies were updated 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,

Dot Hazlin