A flat close to end the trading week, as early gains faded into the close.

The broad market closed basically unchanged Friday; the benchmark index SPX was up just .43 points to close at 2132.98. This represented the second weekly decline, and a loss for this past week of 1%. After rising 16 points mid-day, the index closed at the lows of the day. Next week earnings season kicks off in earnest, so more volatility is likely in store.

Below is the open position status:

SPX Weekly Iron Condor

This position was opened on Friday, October 14. Position details below:

SOLD SPX October 21 2185 Call, 1.00 credit.

BOUGHT SPX October 21 2195 Call, .40 debit.

SOLD SPX October 21 2100 Put, 2.05 credit.

BOUGHT SPX October 21 2090 Put, 1.30 debit.

Order was filled as an "Iron Condor" for $1.35 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: $865.

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

Max loss: 10% of margin/risk or $85.

Below is the risk graph as of the close Friday:

SPX October 14 Iron Condor:

The position is currently -$10 as of the close; the debit to exit is $1.45 according to Think or Swim. The position is long delta going into next week, so should benefit if we get a rally. Our order remains in place to exit for target gain when the debit reaches $.75, or if the max loss reaches 10%.

Below is the SPX chart indicating the short strikes:

SPX 6 month chart

SPY November Monthly Iron Condor

This position was opened on Monday, October 10. Position details below:

- SOLD SPY November 223 Call, .58 credit.

- BOUGHT SPY November 228 Call, .08 debit.

- SOLD SPY November 206 Put, 1.11 credit.

- BOUGHT SPY November 201 Put, .66 debit.

Order was filled as an "Iron Condor" for $.95 net credit (all four legs) .

Margin/Risk is calculated by the width of the wings ($500), less credit received.

Margin/Risk for this trade: $405.

Target Gain: 10% of margin/risk.

Max loss: 15% of margin/risk.

Below is the risk graph as of the close Friday:

SPY November Iron Condor:

The position is currently just above breakeven, and also long delta so a little rally should help. Below is the SPY chart showing the short strikes:

SPY 6 month chart

Trade Management:

The guidelines call for the position to remain open until target gain is reached, as long as SPY stays between the short strikes. They also call for exiting at the pre-set max loss, or if SPY reaches either short strike. It is recommended to have a "good to cancel" conditional order in to exit the position for target gain or max loss. Please follow your broker's specific guidelines on the setup of conditional orders as they can vary by broker. Next week's economic news, is summarized below:

Monday

8:30 am Empire State Manufacturing Index

9:15 am Industrial Production

12:00 pm Fed's Stanley Fischer speaks

1:35 pm ECB President Mario Draghi speaks

Tuesday

8:30 am Consumer Price Index

10:00 am Housing Market Index

Wednesday

8:30 am Housing Starts

8:34 am Fed's John Williams speaks

10:30 am EIA Petroleum Status Report

2:00 pm Beige Book

9:00 pm U.S. Presidential Debate

Thursday

7:45 am ECB Rate Decision

8:30 am ECB Press Conference

8:30 am Jobless Claims

8:30 am Philadelphia Fed Business Outlook Survey

8:30 am Fed's William Dudley speaks

10:00 am Existing Home Sales

Next week is the planned entry window for the RUT Iron Butterfly for November. Monday will be 32 days prior to expiration, so we will look to enter sometime in the coming week depending on market conditions and available credit.

For those unfamiliar with the strategies we trade, 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,

Dot Hazlin