Indecision reigns; it's anyone's guess where this market is headed next.
The broad market limped into the close yesterday barely unchanged. The benchmark index SPX closed at 2141.16, -.18 point, but managed to break the recent string of weekly losses by posting a gain for the week of .38%.
We only have one open position on this weekend; we were fortunate to be able to exit both the SPY and RUT monthly Iron Condors for target gain yesterday.
Below is the open position status:
SPX Weekly Iron Condor
This position was opened on Friday, October 28. Position details below:
SOLD SPX October 28 2175 Call, .55 credit.
BOUGHT SPX October 28 2185 Call, .25 debit.
SOLD SPX October 28 2095 Put, 3.05 credit.
BOUGHT SPX October 28 2085 Put, 2.00 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 28 Iron Condor:
The position is currently +30 as of the close; the debit to exit is $1.05 according to Think or Swim. The position is flat delta and nicely centered going into next week. 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
Next week's economic news, is summarized below:
9:00 am Fed's William Dudley speaks
9:05 am Fed's James Bullard speaks
9:45 am PMI Manufacturing Index Flash
1:30 pm Fed's Charles Evans speaks
1:45 pm Fed's Jerome Powell speaks
10:00 am Consumer Confidence
11:30 am ECB President Mario Draghi speaks
8:30 am International Trade-in Goods
10:00 am New Home Sales
10:30 am EIA Petroleum Status Report
8:30 am Durable Goods Orders
8:30 am Jobless Claims
10:00 am Pending Home sales
8:30 am GDP
10:00 am Consumer Sentiment
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,