Light, pre-holiday volume as the market drifted into the week's close.
The broad market traded basically flat yesterday with very light volume, as investors disappeared for the Holiday weekend. The benchmark index SPX closed slightly up, 2.8 points, at 2263.76. This represented a weekly gain of .3%.
Below is the open position status:
We only have one open position on this weekend; we are sitting mostly flat/in cash until after the New Year before venturing into the SPX weekly Iron Condor.
SPY Monthly Iron Condor for January
This position was opened Monday, December 12; details below:
- SOLD SPY January 233 Call, .52 credit.
- BOUGHT SPY January 238 Call, .16 debit.
- SOLD SPY January 217 Put, 1.09 credit.
- BOUGHT SPY January 212 Put, .62 debit.
Order was filled as an "Iron Condor" for $.83 net credit (all four legs) .
Margin/Risk is calculated by the width of the wings ($500), less credit received.
Margin/Risk for this trade: $417.
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 January Iron Condor:
The position is currently +$37. Our order remains in place to exit when the debit reaches $.41, which would be target gain for the trade, or at the pre-set max loss of 15%. 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.
Below is the SPY chart showing the short strikes:
SPY 6 month chart
Next week is pretty light as far as economic news is concerned; a synopsis is below:
9:00 am S & P Case Shiller HPI
10:00 am Consumer Confidence
10:00 am Pending Home Sales
8:30 am Jobless Claims
11:00 am EIA Petroleum Status Report
9:45 am Chicago PMI
Best wishes for a Happy Holiday season!
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,