The first trading week of 2017 brings major indices to record levels.
The broad market saw new highs once again, after the December jobs report was released yesterday morning. The U.S. created 156,000 new jobs last month, which was slightly below the consensus of 180,000. Investors saw this gain as steady growth in the economy, and all three major indices posted solid gains for the week.
The benchmark index SPX closed up 7.98 points, a gain of .4% to end the week at 2276.
Below is the open position status:
SPX Weekly Iron Condor for January 13 cycle
SOLD SPX January 13 2300 Call, 1.25 credit.
BOUGHT SPX January 13 2310 call, .65 debit.
SOLD SPX January 13 2230 Put, 2.30 credit.
BOUGHT SPX January 13 2220 Put, 1.65 debit.
Order was filled as an "Iron Condor" for $1.25 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: $875.
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 January 13 Weekly Iron Condor:
Below is the SPX chart showing the short strikes:
SPX 6 month chart
The position is currently at breakeven at the close; the debit to exit is $1.25. Our order remains in place to exit the position when the debit is $.65 which would be target gain, or the max loss which is 10% of the margin. The position is quite short delta so should benefit from a pullback early next week.
Next week's economic news is highlighted below:
9:00 am Fed's Eric Rosengren speaks
12:00 pm Fed's Dennis Lockhart speaks
8:30 pm China's Consumer Price Index report
10:30 am EIA Petroleum Status Report
8:30 am Jobless Claims
8:30 am Import/Export prices
8:45 am Fed's Charles Evans speaks
7:00 pm Fed Chair Janet Yellen speaks
8:30 am Producer Price Index
8:30 am Retail Sales
10:00 am Consumer Sentiment
Next week is the planned entry for the February SPY Iron Condor. Monday will be 39 days to expiration. Depending on market conditions and available credit, we will look to open this position sometime next week.
Trade updates will be posted as appropriate.
As always, stay keen on your risk management and trade carefully,