Recommended trade entry for Friday, August 26

Option Code: SPX160902

Expiration: Friday, September 2.

Recommended Trade Entry:

Please note that I am very cautiously recommending this week's trade entry. Janet Yellen's speech is driving the market higher as of this writing. I am giving a bit more room to the downside in the event of a pullback on Monday. However, for those trading this week's play with live capital, please consider doing so in a smaller size - or, there is nothing wrong with keeping cash as your position and sitting on the sidelines for a week.

- SELL SPX September 2 2210 Call, currently $1.45. Delta of short call: .12.

- BUY SPX September 2 2220 Call, currently $.50.

- SELL SPX September 2 2125 Put, currently $ 1.60. Delta of short put: -.08.

- BUY SPX September 2 2115 Put, currently $1.25.

It is recommended to place the order as a single entry: SELL " Iron Condor".

Current mid price for all four legs: $1.30. We recommend trying to get filled for the current mid or a few cents below; the minimum suggested credit is $1.25. Bid/ask prices can sometimes be wide, so there is no guarantee there will be a fill at the current mid price. Some traders may get filled at a better credit, others may have to cave in a bit to get the order executed.

Please note: Traders should always be aware of any news events that may cause a sudden move in the market. If that occurs, it is recommended to immediately cancel the working order until things settle. Depending on the move that may occur, the above strikes may need to be changed to appropriate strikes within the .10 - .15 range. It is each individual's responsibility to select the strikes they feel most comfortable with, depending on trading style and risk tolerance.

Update will be posted with exact position details when the trade is opened.

For those unfamiliar with the strategy, the trade management guidelines for all Couch Potato Trader strategies were updated on August 20, 2015, and can be found here: Link to Articles

As always, stay keen on your risk management and trade carefully,

Dot Hazlin