A mellow Friday to end the trading week as investors digested the latest payroll report.
The broad market struggled for direction Friday after the monthly non-farms payroll report revealed the US added fewer jobs than expected. The benchmark index SPX closed up just .87 points at 2191.95, posting a weekly loss of 1%.
Below is the open position status:
SPX Weekly Iron Condor for December 9 cycle
This position was opened Friday, December 2; details below:
SOLD SPX December 2 2235 Call, 1.35 credit.
BOUGHT SPX December 2 2245 Call, .70 debit.
SOLD SPX December 2 2135 Put, 3.00 credit.
BOUGHT SPX December 2 2125 Put, 2.35 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 December 9 Weekly Iron Condor:
The position is currently showing the position is +$40; the debit to exit as of the close yesterday is $.90. Our order remains in place to exit the position when the debit is $.70 which would be target gain, or the max loss which is 10% of the margin. The position is flat delta so nicely positioned going into next week.
Below is the SPX chart showing the short strikes:
SPX 6 month chart
Next week's economic news is highlighted below:
9:25 am Fed's Charles Evans speaks
10:00 am ISM Non Manufacturing Index
8:30 am International Trade
8:30 am Productivity & Costs
10:00 am Factory Orders
10:30 am EIA Petroleum Status Report
7:45 am ECB Rate Decision
8:30 am ECB Press Conference
8:30 am Jobless Claims
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,