The controversial US Presidential election is over, and the broad market still managed to squeak out a weekly gain.
The market ended another volatile week with mixed results; but managed to score weekly gains for the most part. The benchmark index SPX closed down -3.04 points or .1%, but posted a weekly of gain of 3.8%. This gain represented the largest for the week since October 2014.
Below is the open position status:
SPX Weekly Iron Condor for November 18 cycle
This position was opened Friday, November 11; details below:
SOLD SPX November 18 2200 Call, 2.00 credit.
BOUGHT SPX November 18 2210 Call, 1.15 debit.
SOLD SPX November 18 2090 Put, 2.35 credit.
BOUGHT SPX November 18 2080 Put, 1.90 debit.
Order was filled as an "Iron Condor" for $1.30 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: $870.
Target Gain: 7% of margin/risk or $60.
Max loss: 10% of margin/risk or $85.
Below is the risk graph of this week's position as of the close Friday:
SPX November 18 Weekly Iron Condor:
The position is currently showing a gain of $45; the debit to close is currently $.85. My orders remain in place to exit the position if the debit reaches $.70 which would be target gain, or the max loss which is 10% of the margin.
Below is the SPX chart showing the short strikes:
SPX 6 month chart
SPY Monthly Iron Condor for December
This position was opened on Wednesday, November. Details below:
- SOLD SPY December 222 Call, .48 credit.
- BOUGHT SPY December 227 Call, .13 debit.
- SOLD SPY December 201 Put, 1.29 credit.
- BOUGHT SPY December 196 Put, .82 debit.
Order was filled as an "Iron Condor" for $.82 net credit (all four legs) .
Margin/Risk is calculated by the width of the wings ($500), less credit received.
Margin/Risk for this trade: $418.
Target Gain: 10% of margin/risk.
Max loss: 15% of margin/risk.
Below is the risk graph of the position as of the close Friday:
SPY December Iron Condor:
The position is slightly under water with a loss of -$15, and will benefit from a pullback. We will watch it carefully and exit if the rally causes the position to reach the max loss of 15% of the margin, or $-62.
Below is the SPY chart showing the short strikes:
SPY 6 month chart
Next week's economic news is highlighted below:
1:20 pm Fed's Robert Kaplan speaks
6:30 pm Fed's John Williams speaks
7:30 am Fed's Eric Rosengren speaks
8:30 am Retail Sales
8:30 am Empire State Manufacturing Index
8:30 am Import & Export Prices
1:30 pm Fed's Stanley Fischer speaks
7:30 am Fed's Neel Kashkari speaks
8:30 am Producer Price Index
9:15 am Industrial Production
10:30 am EIA Petroleum Status Report
8:30 am Consumer Price Index
8:30 am Housing Starts
8:30 am Jobless Claims
8:30 am Philadelphia Fed Business Outlook
8:50 am Fed's William Dudley speaks
2:45 ppm Fed's Charles Evans speaks
5:30 am Fed's James Bullard speaks
9:30 am Fed's Esther George speaks
1:30 am Fed's Robert Kaplan speaks
Next week is the planned entry for the RUT December Iron Butterfly. Tuesday will be 31 days to expiration, so we will look to enter sometime next 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,